Centamin Provides Positive Market Update Regarding Egyptian Concession Agreement, Shares Jump 28% at Midday

By MidnightTrader.com Staff,

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Centamin (CEE.TO)has now received a copy of the official written judgement of the decision of the Egyptian administrative court handed down on Tuesday 30 October 2012.

As was expected, the official written judgement makes it clear that it rejects any request to terminate or treat as invalid the Concession Agreement entered into between the Arab Republic of Egypt,the Egyptian Mineral Resources Authority (EMRA) and Centamin's wholly owned subsidiary Pharaoh Gold Mines ( PGM ).

The judgement further makes it clear that PGM had made the necessary notifications to be entitled to be granted an "exploitation lease" in accordance with the Concession Agreement.

However, the judgement states that sufficient evidence was not submitted to Court in order to demonstrate that, as required by the terms of the Concession Agreement, the requisite approval from the relevant Minister had been obtained, and thus the court deemed that the process of the conversion to an exploitation lease was therefore invalid.

Centamin said it possesses the executed original lease documentation which clearly shows such approval from the Minister of Petroleum and Mineral Resources. It appears that this document was not listed in the documents supplied to the Court. As such the Company is confident that this matter can be resolved during the appeal process.

Close to 1.5 million shares have changed hands.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Commodities
Referenced Stocks: PGM

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