Georgian Mining Corporation announces its final results for the year ended 31 December 2018.
Mike Struthers, CEO, commented, “The only issue holding us back is the exploration permit delay with the government in Georgia. The company continues to explore all avenues for resolving the application, and to engage with senior government officials and other influential parties to try to solicit an outcome. The extreme delay in the Georgian government awarding the permit is clearly unacceptable, with an absence of any formal feedback to the Company.
Outside of the Georgian government our direct engagement on the issue presently includes the British Ambassador and Embassy staff in Georgia; the British Government via its Trade Envoy to Georgia and Armenia; the Georgian Ambassadors to the United Kingdom and Canada; and selected British companies who are already successfully established and influential in Georgia and the region.
Recent political unrest in Georgia is most unfortunate and we hope for Georgia’s sake that it can be resolved peacefully very soon. It only indirectly impacts on the company’s permit application through being a distraction for senior government officials as the country responds to the challenge.
In terms of costs and treasury, the Directors and Executive staff have not received any compensation for their strenuous efforts on behalf of the company since May 2019, and this situation continues. Given the continued delays and resulting poor performance of the company the Board concluded it was appropriate to write-off their Directors fees owing since May 2018, with the exception of the Chief Executive who wrote off part of his fees. The total write-off since May 2018 is £275,000.
Furthermore, the company has made progressive reductions in operating costs both in Georgia and corporately as the permit delay has continued. This has regrettably now included reductions in non-core roles and staff redundancies. We continue to maintain our small team in country, at a low cost, in the hope the permit will be awarded in the near future and to enable us to commence work rapidly.
In terms of newsflow, I recognise the desire of many shareholders for more regular updates on the company’s activities in respect of the exploration permit application. However, because of the political dimensions behind the permit delay many of the initiatives the company is pursuing cannot be publicised since this would undermine those very initiatives. It is a frustrating situation but that is the reality. We continuously look for opportunities to share news with shareholders, but I ask for continued understanding.
A combination of initiatives has been successful in raising the permit issue to a high priority in the Georgian government, and I hope to be able to report positive progress in the near future.”
The annual report and accounts for the year ended 31 December 2018 will be posted to shareholders today.
The annual report and accounts for the year ended 31 December 2018 are available for download on the Company’s website, www.georgianmining.com.
Shareholders will be advised separately of the timing for the Annual General Meeting of the Company.
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