Egypt, Centamin reach deal on exploration regulations

Centamin (TSX: CEE; LSE: CEY), the Egyptian Ministry of Petroleum & Natural Resources (MoP), and the Egyptian Mineral Resources Authority (EMRA) have […]
Egypt’s Eastern Desert where Centamin has three blocks of highly prospective ground. Credit: Centamin

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Centamin (TSX: CEE; LSE: CEY), the Egyptian Ministry of Petroleum & Natural Resources (MoP), and the Egyptian Mineral Resources Authority (EMRA) have reached an agreement in principle for the 3,000-km2 of ground awarded to Centamin in 2021 for exploration in the Easter Desert.

The agreement applies to Centamin’s three EDX blocks (Nugrus, Um Rus, and Najd). Exploration licences will be issued for a 30-year period, once the agreement has been approved by parliament and legally ratified. It outlines the fiscal and legal regime, including a 5% government net smelter royalty, a corporate tax rate of 22.5%, a 15% government net profit interest post-tax, and a 0.5% community development contribution. It also carries life-of-mine commitments for local employment, training, and procurement.

The EDX project consists of three non-contiguous blocks. Fieldwork began in 2022 with systematic exploration aimed at identifying and prioritizing commercial-scale opportunities. Reconnaissance-scale exploration has been conducted on all three blocks across the extensive dry wadi (drainage) systems. Surface work included geochemistry and geological mapping of high-priority targets identified by remote sensing.

Centamin CEO Martin Horgan said the company believes the new agreement will lay the foundation for developing Egypt’s mining sector. He has confidence in the geological potential in the country, and notes that the agreement offers a fair risk/reward balance and will provide a stable operating environment.

More information is posted on www.Centamin.com.

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