24th Apr 2014 08:42
LONDON (Alliance News) - Centamin PLC Thursday announced that a new investment law which came into effect in Egypt on Wednesday could help in its ongoing court appeal against claims made against it.
The FTSE 250-listed metals and minerals producer said the new law will restrict the capacity for third parties to challenge any contractual agreement between the Egyptian government and an investor, which could result in a legal case against it being dismissed.
In 2012, the company launched an appeal against a court ruling which questioned its rights to operate the Sukari Gold Mine, its only producing mine.
Centamin said the new law appears to cover all currently pending lawsuits and challenges, noting that it is in discussions with its advisers over how the original claim against it, which was brought by a third party, private individual Engineer Hamdy El Fakharany, may be dismissed under the new law.
The company has previously said that it believes El Fakharany brought the case against the company due to in independent political agenda.
Centamin's Sukari mine continues to operate for the company during the ongoing case, and the company does not yet know when the appeal is expected to conclude.
The Sukari mine is expected to produce 420,000 ounces of gold in 2014, and the company is currently commissioning its stage-four expansion plan for the site, which it hopes will improve its overall throughput and gold production levels.
Centamin shares were up 8.9% to 60.90 pence, putting it atop the FTSE 250 in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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