Africa-focused gold miner Luiri Gold says it will recommence exploration and development operations at its Liuri Hill project immediately, after having its large-scale mining licence reinstated by the Zambian government.
The announcement this morning sent Luiri’s stock’s flying, closing up 111.1 per cent, to finish the day’s trade at 19 cents.
Liuri said the agreements were the result of extensive negotiations with the Zambian government.
The miner had its licence stripped in June last year, on the grounds that the company had not yet started mining, despite being issued a mining licence in 2003.
The original licence did not, however, specify a development timeline, or identify any dates for Luiri to being production.
The settlement reached today requires Luiri to commence construction of a mining project before Devember 31, 2013, allowing for two dry seasons in which the company can continue its exploration activities.
“The directors of Luiri believes this provides the company with sufficient time to complete the necessary exploration activities prior to commencing possible mine development,” the company said in a statement today.
Luiri also announced today a reshuffle of its board, with director Melissa Sturgess taking on the role of non-executive chairman, while director Evan Kirby has been appointed as chief executive and managing director.
Mr Kirby will also act as chairman of Luiri’s Zambia-based subsidiary, Luiri Zambia.
Clinton White has been appointed chief executive, country manager and general manager for Luiri Zambia.
Ms Sturgess said the company was very pleased with the outcome.
“Thanks are due to the efforts of Luiri’s new team and also to the government of Zambia, and its stakeholders, who have all been integral in achieving an outcome which will see Luiri’s exploration and development efforts expand for the benefit of both the shareholders of Luiri and for the people of Zambia,” Ms Sturgess said in a statement.
