Page 60 - GEORptFeb21

9.2.3 ​Metal and mining corporate news
Canadian investor to take over 50% in Georgian gold and copper mining project
Canadian company Candelaria has reached an agreement to acquire GMC Investment, which owns a 50% stake in Georgian Copper & Gold, a company with a gold mining licence for the Bolnisi district of Georgia, Candelaria said in a ​statement​.
The share purchase agreement was signed with former owner of Georgian Copper & Gold, Empire Metals. Canadian dollar (CAD) 7mn (€4.5mn) is to be paid in equity in four stages with the final stage linked to the completion of a positive feasibility study and a final investment decision on the gold oxides at Kvemo Bolnisi East.
The Bolnisi project is situated within a highly underexplored part of the prolific Tethyan Belt, a well-known geological belt and host to many high-grade gold, copper and polymetallic deposits and producing mines, the company said in a press release.
Empire Metals executives Mike Struthers and Neil O’Brien are to join Candelaria as CEO and chairperson, respectively, while remaining non-executive directors of the London-listed company.
According to the statement, Georgian Copper & Gold holds a mining licence in the Bolnisi district, where gold and copper mining is not yet in an active phase. In addition, it is clear from the statement that the licence area of Georgian Copper & Gold includes a section of Damblud, where significant reserves of gold and copper are traced.
9.2.4 ​Utilities corporate news
Georgian businessman picks up 25% of electricity distributor Telasi as sole bidder at auction
Fitch downgrades Georgian water utility GWP
Best Energy Group, a two year-old company founded and wholly owned by businessman Khvicha Makatsaria, has bought 24.5% of major Georgian electricity distribution company JSC Telasi from the state. The sale took place in a public auction at the starting price of Georgian lari (GEL) 32.4mn ($10.5mn).
Makatsaria is also a shareholder in Caucasus Online and owns a controlling stake in Tbilisi Energy.
Best Energy Group was the sole participant in the auction.
The controlling stake in Telasi, amounting to 75.11%, is held by Silk Road Holdings B.V., a company registered in the Netherlands and founded by Russian energy group InterRAO.
Telasi’s total revenues in 2019 amounted to GEL453mn ($151mn). Net profit stood at GEL14mn ($4.66mn).
The company distributes electricity to Tbilisi and the surrounding area, to both households and companies.
Fitch Ratings has downgraded Georgia-based Georgian Water and Power’s (GWP’s) long term foreign debt Issuer Default Ratings (IDR) to B+/stable from BB-.
The ratings agency simultaneously withdrew the GWP ratings.
The downgrade followed the alignment of GWP's ratings with those of its parent, Georgia Global Utility (GGU; B+/stable), reflecting strong ties between the two, including direct funding from the parent following the recent refinancing of all outstanding debt with a loan from GGU and the provision of guarantees to GGU's noteholders by GWP.
Fitch expected GWP to be the most significant operating company for GGU at 72% of average revenue and 60% of average Ebitda per year for 2020-2024. The GWP rating is supported by the company‘s natural monopoly position,
60​ GEORGIA Country Report​ February 2021 ​ ​www.intellinews.com