Mining Convention Update for Lefa mine signed
London, United Kingdom, 6 August 2018 - Nord Gold SE ("Nordgold" or the "Company"), the internationally diversified gold producer, is pleased to announce that Alpha Condé, the President of the Republic of Guinea, has signed the Decree of Promulgation of the Amendment Agreement for the renewal of the Convention de Base (“Mining Convention” or “document”) for the Lefa mine. The Mining Convention determines the taxation and customs regimes under which SMD, the owner of the Lefa mine, operates, as well as other provisions regulating the Company’s activities in Guinea.
Nikolai Zelenski, Nordgold CEO, said:
“I’d like to express my sincerest appreciation to the President of Guinea and the Guinean Government for the continued open dialogue and productive collaboration. Renewal of the Mining Convention is an important step for the long-term development of our Lefa mine. Guinea is a key region for us, with Lefa contributing over 20% of the group’s production. It has a strong reserve growth potential and we are exploring the possibility of developing underground mining at Lefa, which will further extend the life of the mine, providing more investment, jobs, and taxes for the people of Guinea.”
The Mining Convention renewal will be followed by the renewal of the Mining Permit, which the Company will apply for in 2018. The current permit is valid until March 2019 and Nordgold expects to extend the Convention and the Mining Permit for 15 years, in line with Lefa’s current life of mine.
In accordance with local law, the Republic of Guinea will receive 15% of the share capital of SMD. The transfer will occur in two tranches, within two years after the ratification of the amendments to the Convention.
For your convenience, please find the complete text of announcement attached.
For further information, please contact:
| Andrei Naumov
Media Relations Specialist
|Tel: +7 495 644 4473|
| Peter Ogden
|Tel: +44 (0) 20 7250 1446|