Project Description
In 2015, Lydian International Limited had completed exploration of the Amulsar gold deposit and had secured financing to start mine development. In 2016, the EBRD provided Lydian International with an equity injection, which was earmarked for financing of the Environmental and Social Mitigation Measures (ESMM) (as defined in the ESAP, including financing a biodiversity off set programme and the construction of water treatment facility) and related activities.
Client Information
LYDIAN INTERNATIONAL LTD
Lydian International used to be a publically-held corporation, registered in Jersey, Channel Islands and listed on the Toronto Stock Exchange. Its key asset was the Amulsar gold deposit in Armenia.
Lydian International became insolvent in 2019 at which time it applied for protection from its creditors in Canada allowing it to restructure its business and financial affairs. As part of the insolvency proceedings, a corporate restructuring plan was adopted resulting in the company's existing senior lenders in Lydian Canada, Lydian UK and Lydian Armenia owning and controlling the assets while Lydian International is subjected to closure proceedings before the competent Jersey court.
As of July 2020, the Amulsar gold deposit is owned by Lydian Ventures of Canada, where the EBRD is not a shareholder. The EBRD remains a shareholder, for now, in Lydian International of Jersey, which has no assets. The lenders will apply to the court in Jersey for it to be wound up.
EBRD Finance Summary
The Bank invested CAD 11.4 million to purchase shares of Lydian International as part of its capital increase. The funds were used to finance ESMM undertaken as part of the project. The EBRD did not invest in Lydian Ventures and does not have a financial interest in it.
Environmental and Social Summary
An ESIA was prepared for the project, and the EBRD was actively monitoring the implementation of the ESIA until the point of Lydian International's insolvency, at which time the EBRD's financial interest in the Amulsar project ceased.
PSD last updated
06 Aug 2020
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OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
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