Recently the management of the State Geological and Subsurface Survey of Ukraine (SGSSU) held an official meeting with American representatives of the Avellana Gold Company. The purpose of the meeting - to discuss the main terms and conditions for possible projects in mining, to understand the interest of the state in the creation of a new industrial facility. The investor has acquired the compani…
Recently the management of the State Geological and Subsurface Survey of Ukraine (SGSSU) held an official meeting with American representatives of the Avellana Gold Company. The purpose of the meeting - to discuss the main terms and conditions for possible projects in mining, to understand the interest of the state in the creation of a new industrial facility. The investor has acquired the companies that hold the licenses for the production and exploration of polymetallic ores in the Western Ukraine. Avellana Gold - is a separate line of a group of investors, who are engaged in mining projects in the post-Soviet space.
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Over the years of Ukraine's independence, it would be the first project on extraction of metals, implemented by junior mining companies.
Despite the military situation in our country, the investor agreed to invest private capital to bring the project to compete with international analogs and to launch in the dates due license. According to Director and Shareholder of the company, Avellana project is a result of hard work of the team of international experts over the last nearly nine months. "Today, we are totally aware of geological and operational risks of the project, high demands of the local community on environmental safety of the project and the actual impossibility of attracting long-term debt capital in the country with pre-default rating. We understand it all, therefore we would like to receive only two guarantees from the state. First, a signal that the country really needs a big project for the extraction and beneficiation of ores and, second - ensuring that the licensing conditions and regulatory rules on mineral resources will be stable during the project," notes American investor, Brian Savage.
"Provided successful implementation of the project, we expect to launch in Ukraine 2-3 more junior companies that will become significant competitors of similar projects in Canada, Australia and Africa. SGSSU headed towards such extremely important anchor projects not a one month, and this is one of them. One of our goals - is its inclusion in the list of basic investment projects of the country ", - said the Head of SGSSU, Mykola Boyarkin.
Mr. Brian C Savage said that for now the company would focus only on this direction. However, subjected to close cooperation at various levels of the government, Ukraine can really become a successful recipient of international capital. Thus, according to geological criteria, the state has several projects that could be of interest in view of the global market needs. However, legal risks and the lack of tax incentives make massive arrival of junior companies almost impossible.
"We must start a bilateral dialogue to correct the shortcomings of the Ukrainian legislation, because we badly need such projects. Currently, the main task for all of us is launching a project that would become a landmark for international investors and Ukraine as a whole "- sums up Mykola Boyarkin.
Chairman of the company is Brian C Savage - Chairman of Pioneer Management LLC, a privately held company he founded in 2009 to advise and invest in natural resource projects and companies. He has more than 35 years of experience in the industry; he is a financial advisor at Source Capital Group, as well as Executive Chairman of Certified Minerals Limited - the company he established for the initial purchase and sale of cassiterite (tin), niobium / tantalite and wolframite ore in mining communities, acquisition of mineral concessions in Congo. In addition, B. Savage is a non-executive director of Amur Minerals Corporation, a mineral exploration and development company in the Far East of Russia, listed on AIM.
Chairman of geological advisers of Avellana Gold is Charles Beaudry. He has experience in Noranda, Falconbridge, Xstrata (now - Glencore), Iamgold Inc., Xmet Inc. Charles is a vice president of International Explorers and Prospectors Inc. with assets in Ontario, Quebec and New Brunswick. Mr. Beaudry was also elected to the Board of Directors of the Prospectors and Developers Association of Canada.
Head of Ukrainian office of Avellana Gold is Nikolay Gozhyk, who previously was the chief engineer at Zakarpatpolimetaly LLC, Director of Saulyak LLC.
Junior companies - companies financed by private and public capital and established mainly by geologists with significant experience, a narrow professional specialization. In fact, investors are investing in not only project, but the reputation and experience of its founders. The vast majority of large mining projects in the world are funded for through junior companies. Only a few countries in the world are recognized leaders in attracting junior capital - Canada, Australia and the United Kingdom, the secondary are South Africa and China.