Egypt greenlights new gold mine, first in over a decade

Canada’s Aton Resources (TSX-V: AAN) became the first company
in more than a decade to secure a gold mining licence in
Egypt
, which last year issued new regulations to ease foreign
investment in the sector.

The new rules eliminated the need for miners to form joint
ventures with the Egyptian government and limits state royalties to
a maximum 20%, measures long advocated by the private sector.

The company said the licence underscored the country’s new
commitment to developing its exploration and mining sector

Aton’s permit is the second mining licence issue in Egypt
since 2005, when Centamin (LON:CEY) (TSX:CEE) — the country’s
main gold producer — was granted its licence for its Sukari
mine.

Aton’s president and chief executive, Mark Campbell, said the
licence is for 20 years, with the possibility of extending it for
another 10 years. It allows the company to start the Hamama
development as well as continuing exploration at Rodruin and other
exploration targets within the Abu Marawat concession.

“It also underscores Egypt’s new commitment to developing
its exploration and mining sector,” Campbell said. “Egypt is a
country that has vast untapped mineral potential, not only in gold,
but across all precious, base and industrial minerals.”

The country, which links northeast Africa with the Middle East,
has targeted $700 million of new investments in the mining and
energy sectors by 2030.

(With Reuters)

Source: FS – Mining B.
Egypt greenlights new gold mine, first in over a decade



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