Chaarat ends talks to buy Amulsar gold project in Armenia

MOSCOW. April 24 (Interfax) - Chaarat Gold has discontinued negotiations on the acquisition of Lydian Armenia, which owns the Amulsar hard rock gold deposit in Armenia, the gold miner said.

Trading in Chaarat Gold shares, suspended on the London stock Exchange's AIM on October 24 last year when talks with Lydian Armenia's owner were announced, has resumed.

Chaarat has decided to discontinue discussions with immediate effect as no acquisition structure could be agreed within the maximum six-month suspension period.

Chaarat will continue to seek opportunities to diversify its asset portfolio and grow inorganically, as well as pursuing organic growth through its existing assets.

Lydian Armenia is a wholly owned subsidiary of Lydian Canada Ventures, which in turn is owned by U.S. investment company Orion Mine Finance and Canada's Osisko Gold Royalties. The latter's website said that Amulsar's reserves are estimated at 2.6 million ounces of gold and 12.7 million ounces of silver. The overall resource base is 4.8 million ounces of gold and 25.1 million ounces of silver.

Chaarat Gold's assets include the Chaarat hard rock gold project in Kyrgyzstan and the operating Kapan gold and polymetallic ore mine in Armenia. The company's largest shareholder is Brunswick Group cofounder Martin Andersson, who together with Labro Investments controls about 45.8%.