Update in relation to Kalavasos Project

RNS Number : 3007Y

Caerus Mineral Resources PLC

05 September 2022

 

For immediate release  5 September 2022

Caerus Mineral Resources PLC

Update in relation to Kalavasos Project

Caerus Mineral Resources PLC ("Caerus" or "the Company"), a resource development company with a focus on the "Clean Energy" initiative of its strategic partner EV Metals Group plc (EVM), would like to provide an important update in relation to the Kalavasos Project.

The Company's subsidiary New Cyprus Copper (NCC) currently holds four licences in the Kalavasos area of which the Kalavasos East license AE4811 is regarded as the most important, hosting the majority of the past producing mines of the region. All NCC's licences have been granted by the Mines Service Department of Cyprus.

Before NCC can undertake an exploration programme within or proximal to military installations, it is a condition that it obtains consent from the Cyprus Ministry of Defence (the MOD). During Q4 2021, NCC made a formal request to the MOD for such approvals. Towards the end of February 2022, the Company received a letter from the MOD rejecting the request and, in addition, the MOD imposed a buffer zone around its military installations in the Kalavasos region.

On the prompting of the new Board, a meeting with the Mines Service Department was held on 25 July 2022 and again on 8 August 2022 to try and resolve the MOD's position on the Kalavasos licences. The Mines Service Department has today communicated to NCC that it is unable to waive the conditions imposed by the MOD (including the maintenance of a buffer zone), and further it has been decided that licence AE4811 is unable to be renewed.

The Company notes that the MOD has approved the issue of the Kalavasos East license AE4811 on three separate occasions within the last 12 years, most recently on 15 June 2021. As a result, the Company has invested in surveying and sampling programmes on Kalavasos East AE4811 as well as paying annual rental fees to the Mines Service Department.

The impact of the MOD's decision means:

· exploration activity is not possible at NCC's most important Kalavasos license AE4811.

· license AE4811 will not be renewed.

· NCC will appoint external advisers for the purposes of undertaking a review of the decision of the MOD and to determine the Company's legal position.

· The directors believe that this will not be resolved in the short term and the Company will update the market in due course.

· NCC's and the Company's directors are available to meet directly with representatives of the MOD at short notice.

Charles Long, Chief Executive Officer of Caerus, commented: "This is an extremely frustrating development where we have been seeking clarification from the authorities since the new board became aware of the issue in June.

We believe it is eminently possible to operate at Kalavasos East without disturbing or presenting any security risk to the MOD's nearby installations. This includes the exploration, construction and most importantly the production phase.

Although there are underground volcanogenic massive sulphide targets at Kalavasos, our initial target is the extensive surface dumps which sampling shows contain significant gold and copper grades. These dumps would be removed as part of a free-digging, clean-up, operation with a positive environmental impact on the area".

For further information please contact:

Caerus Mineral Resources plc
Charles Long Chief Executive Officer	[e-mail]
Novum Securities
Jon Belliss	[phone]

For further information, please contact [e-mail] or visit www.caerusmineralresources.com

 

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