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License for Jerooy to be put in pledge to get loan of $ 180 million

Alliance Altyn Company is going to put a license for development of Jerooy gold deposit in pledge in a bank to get a loan of $ 180 million. Daniyar Zhanykulov, head of the company’s public relations department, confirmed the information to 24.kg news agency.

According to him, the wording of the law on mineral resources, adopted in May 2018, allows companies to carry out such procedures. To this end, in early September, Alliance Altyn applied to the licensing commission at the State Committee for Industry, Energy and Subsoil Use. It permitted the deal.

«After it, our lawyers began to work on an agreement. We plan to get a loan of $ 180 million in the Russian VTB-Bank. There is nothing new. Initially, it was said that our company would take loans for the construction of a processing complex,» commented Daniyar Zhanykulov.

Negotiations with the bank are at the final stage. Alliance Altyn needed money to build a gold mining plant and a tailing dump.

Earlier, Alliance Altyn Company paid a fine of $ 600,000 due to violation of the set deadlines for the construction of a gold extraction plant and a tailing dump.

«We do not violate the laws of Kyrgyzstan. We carry out work on the object under a license agreement. In addition, we are not talking about putting a deposit in pledge in the bank. We pledge only the license. The state committee may revoke it if the terms of the license agreement are not fulfilled,» concluded Daniyar Zhanykulov.