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Avellana Gold discusses specifics of doing business in Ukraine with UkraineInvest representatives Avellana Gold discusses specifics of doing business in Ukraine with UkraineInvest representatives

Avellana Gold CEO Brian Savage had a meeting with representatives of investment promotion company UkraineInvest in Kyiv. In the course of meeting the companies discussed efficient ways of doing business in Ukraine. According to Avellana Gold, investment climate in Ukraine is improving and the country is becoming more and more attractive for business, yet foreign investors often e...

Avellana Gold CEO Brian Savage had a meeting with representatives of investment promotion company UkraineInvest in Kyiv. In the course of meeting the companies discussed efficient ways of doing business in Ukraine.

According to Avellana Gold, investment climate in Ukraine is improving and the country is becoming more and more attractive for business, yet foreign investors often encounter bureaucratic difficulties.

“Our meeting with UkraineInvest testifies to the stage that Avellana is currently at. I think that Ukraine is interested in understanding all the challenges that an investor may encounter here. UkraineInvest gave us good advice on how to deal with such challenges and expressed interest in our progress of growing as a company,” Brian Savage, CEO of Avellana Gold said.

Avellana Gold has developed a unique polymetals mining project in Zakarpattia and plans to invest around 100 million $. The project will allow for construction of a technologically advanced enterprise that Ukraine has not had for the past 20 years.

“We feel that it is possible to do business in Ukraine and that the government is involved in attracting investment. At the same time, some very insignificant problems may become critical for an investor. We are, first of all, referring to bureaucracy – the company got all permits for doing business but the very process of document issue is being delayed. We are hoping that with the help of UkraineInvest recommendations and attraction of business ombudsmen we will be able to solve all the problematic issues,” Andriy Smolin, representative of Avellana Gold in Ukraine, stated.

It should be reminded that in 2016 Avellana Gold bought Carpathian Mining Company and Western Exploration Company that hold special permits for exploration and mining of polymetal ores in Western Ukraine (Muzhiivske, Berehivske and Kvasivke deposits).

Avellana Gold joins European Business Association Avellana Gold joins European Business Association

Avellana Gold got new opportunities for running business in Ukraine and establishing cooperation with world leaders in different spheres. The Company has recently joined European Business Association – one of the most influential communities, which represents investors in Ukraine in order to improve investment climate in the country. European Business Associa...

Avellana Gold got new opportunities for running business in Ukraine and establishing cooperation with world leaders in different spheres. The Company has recently joined European Business Association – one of the most influential communities, which represents investors in Ukraine in order to improve investment climate in the country.

European Business Association decided to admit Avellana Gold to its membership on June 19.

“As a member of European Business Association Avellana Gold will be able to establish business relations with leading Ukrainian and foreign companies that work in Ukraine. What is also important is that membership in this organization testifies to Company’s obligation to work using the principles of transparency and comply with European business standards”, Andriy Smolin, the representative of investor of Avellana Gold in Ukraine, said.

Membership in European Business Association gives investor companies an opportunity to establish partner relations with government, which will also boost economic growth of Ukraine.

“I hope that in the nearest future Avellana Gold, which will be exploring a polymetal deposit in Zakarpattia region, will become involved in a productive dialogue with the government. Investment climate in Ukraine is really changing for the best. We can become an attractive country for running business and investment and European Business Association may facilitate this”, Andriy Smolin remarked.

Reference:

European Business Association is the largest non-governmental business community comprised of nine hundred leading companies working in Ukraine. The main objective of association is to establish partner relations between European businesses and representatives of Ukrainian government to create favourable conditions and attract foreign investment. European Business Association was founded on the initiative of European Commission, which has an interest in supporting European business in Ukraine.

Avellana Gold will apply only environmentally friendly technologies in polymetal mining Avellana Gold will apply only environmentally friendly technologies in polymetal mining

Environmental situation in the territory of Muzhiyevo deposit is difficult, since after the activity of previous mining companies ore dumps have been left in the vicinity. They contain concentrated ferric sulphides and other heavy metals oxidizing surface water run-offs. Elimination of such consequences is the primary task of Avellana Gold in the territory: the company has already start...

Environmental situation in the territory of Muzhiyevo deposit is difficult, since after the activity of previous mining companies ore dumps have been left in the vicinity. They contain concentrated ferric sulphides and other heavy metals oxidizing surface water run-offs. Elimination of such consequences is the primary task of Avellana Gold in the territory: the company has already started reclamation and intends to invest about 50 mln. dollars into it, and in total invest twice as much into the deposit development project.

As the head of Avellana Gold, American investor Brian Savage states, as of today the company has already got acquainted with the history of the field development. There has been developed a new project that aims to ensure comprehensive field development and avoid environmental problems caused by the previous operator. There has already been cleaned the pond-water setting area, located at the entrance to Muzhiyevo. The company also installs environmental filters with limestone and zeolites, designed for discharge water neutralization. ‘So far there are 450 tons of dumps close to the deposit, and we as the investing company must liquidate them on our own. Otherwise, one cannot start mining there’, – states Savage.
Unlike companies-predecessors that used to mine polymetals here, Avellana Gold will use only innovation technologies that are environmentally safe, viz. flotation method. This technology is much safer that cyanation (cyanide) that was used before, in the 80ies, and that affected the environment.
The field development project of Avellana Gold in Zakarpattia is an absolutely new technological project, with no counterparts over the past 20 years. It is the first in Ukraine to create opportunities for mining business development due to private foreign capital. The production place is expected to provide some 500 people with jobs for the nearest 30-40 years.
Let us recall that last year Avellana Gold acquired companies Carpathian Ore Company (Karpatska Rudna Kompaniya) and Western Exploration Company (Zakhidna Heolohorozviduvalna Kompaniya), which have got special permissions for mining and exploration of polymetallic ores in Berehovo ore field (Muzhiyevo, Berehovo and Kvasove fields). Over 2017 the company will only be preparing Muzhiyevo field for operation, and next year it intends to start gold mining here.

The Government of Ukraine will promote foreign investors, therefore we are ready to provide funding for projects in Ukraine, – management of Avellana Gold The Government of Ukraine will promote foreign investors, therefore we are ready to provide funding for projects in Ukraine, – management of Avellana Gold

These days there has taken place the meeting of the CEO of Avellana Gold Brian Savage with the representatives of the Ministry of Economy of Ukraine and the State Services of Geology and Deposits of Ukraine. The representatives have discussed attraction of investment in Ukraine as exemplified by Muzhiyevo polymetallic deposit, as well as technical issues relating to the project implementation....

These days there has taken place the meeting of the CEO of Avellana Gold Brian Savage with the representatives of the Ministry of Economy of Ukraine and the State Services of Geology and Deposits of Ukraine. The representatives have discussed attraction of investment in Ukraine as exemplified by Muzhiyevo polymetallic deposit, as well as technical issues relating to the project implementation.
‘A month prior to the date decision was passed on acquisition of assets in Ukraine, I had a short talk with Volodymyr Groysman. The Prime-Minister assured me that the Ukrainian government would promote foreign investors to the maximum extent possible. State approach to investment attraction has really changed a lot over the last year, and I don’t feel sorry about my decision to finance projects of the mining field in Ukraine. I would like to stress that I am also interested in the implementation of other projects in the region’, – said during the meeting Brian Savage, the CEO of Avellana Gold.
In the words of the meeting participants, Muzhiyevo polymetallic deposit is an absolutely new project from the technological point of view, having no counterparts over the last 20 years. For the first time in Ukraine the opportunities for mining business development are being created out of private foreign capital. In case of successful project implementation there may well be launched a large-scale production that will provide jobs to 500 people for at least 20 years, and, according to expert estimates, – even for 40-50 years.
‘The state needs such investment projects as development of Muzhiyevo deposit. And we are ready to study the project more in-depth as well as continue our dialogue with Avellana Gold’, – said Maksym Nefiodov, deputy minister for economic development and commerce of Ukraine.
Also, the meeting participants discussed a whole range of environmental issues, which include liquidation of negative consequences of previous mining companies’ activity, introduction of innovative technologies that would be absolutely safe for the environment.
Let us remind you that Avellana Gold is a company dealing with exploration and development of mineral deposits, in particular, in Ukraine and in the neighbouring countries in the territory of Eastern Europe. In 2016 Avellana Gold bought the companies Carpathian Ore Company (Karpatska Rudna Kompaniya) and Western Exploration Company (Zakhidna Heolohorozviduvalna Kompaniya), possessing special permissions for geological exploration, research and commercial development, and extraction of polymetallic ores in Western Ukraine (Muzhiyevo, Berehovo and Kvasove deposits).

The Avellana Gold Team on the Prospects of the Project, International Conference within PDAC 2017, Canada The Avellana Gold Team on the Prospects of the Project,  International Conference within PDAC 2017, Canada

Avellana Gold Company has presented a project in the development of Muzhiyevo polymetallic deposit at the conference Ukraine: Opportunities in Extractive Industries, dedicated to Ukrainian developments in the field of mining. The event was held within PDAC 2017 International Convention, Trade Show & Investors Exchange and was initiated by the Chamber of Commerce and Industry of Ukraine. Accord...

Avellana Gold Company has presented a project in the development of Muzhiyevo polymetallic deposit at the conference Ukraine: Opportunities in Extractive Industries, dedicated to Ukrainian developments in the field of mining. The event was held within PDAC 2017 International Convention, Trade Show & Investors Exchange and was initiated by the Chamber of Commerce and Industry of Ukraine.

According to Brian Savage, the CEO of Avellana Gold, Ukraine is of interest for the international community primarily as a country with undeveloped geological potential. And this convinces of the need to elaborate a new development strategy for the company.

‘During my first visit to Ukraine I got a lot of optimistic assurances, and I don’t want to believe in the opposite. The number of investors interested in our project by far exceeds the scope of investment we need. We have to guarantee reliable protection against political risks to them’, - indicated Brian Savage.

Also, the CEO of Avellana Gold told about the investment complexities for the project implementation: ‘Now investors are ready to give money even for some projects in the African territory at the rate of 20% annual, but the requirements to profitability in Ukraine are much higher. For us, as for core investors, there arises the need to look for cheap resources of institutional investors (that requires years) or sacrifice our own profits by undertaking the larger part of risks for the first five years ourselves’.

During asset acquisition and a detailed analysis of the legal side of the matter Avellana Gold opened up new aspects of business development. The company has signed a number of primary agreements, therefore, it is likely that already next year the team of Avellana Gold will present a new project in Toronto – Avellana Exploration.

‘The geological data we posses gives grounds for a meaningful talk. But I hope to get more responses from the authorities during my visit to Ukraine at the end of March’, - adds Brian Savage.

Charles Beaudry, the head of Avellana Gold’s consultancy group in geology, also took part in the conference. He shared his vision and prospects of the Muzhiyevo deposit development:

‘Over the last 3-4 years my colleagues could not find application for their knowledge, but now the situation is different. While last year lithium was in demand, now everybody pays attention to the zinc market situation. The rise in its prices is unavoidable. I am glad that zinc takes a special place in Avellana Gold’s product portfolio. But personally for me Avellana Gold is an opportunity to get acquainted with the geology of the Carpathians in general’.

Charles Beaudry draws attention to another trend mentioned at PDAC 2017. That is reduction of the cost of underground extraction technologies, creating the basis for the increase in the resource base: ‘We would be happy to use those new developments in Ukraine’.

Besides Avellana Gold, such entities and companies as the State Service of Geology and Mineral Resources of Ukraine, Canada-Ukraine Chamber of Commerce, UMG, Black Iron, Pluto Investment, Velta, Techika, Classic Jewelry House Lobortas, Paletcom S.R.L., CUTIS Project, Naturallia, VIP-Oil LTD, and others have participated in the conference.