Ortac resources (LON:OTC) has been re-issued a permit for its Slovakian subsidiary, causing shares to jump.
The AIM listed mineral exploration company operating in Europe and Africa, has been re-issued an underground mining permit by by the District Mining Bureau in Banská Bystrica. This marks a reversal from the decision announced on December 7th last year, when the permit was revoked by officials.
Vassilios Carellas, Ortac’s chief executive, said of the decision: “We are naturally pleased that the DMB has re-issued the permit, which has been amended to consider the points raised by the RC.
“This decision, whilst welcome, does allow for an appeal process to be made by potential complainants, within a period of approximately one month from the issue of this permit, which if triggered, would result in a final judgement on the permit being undertaken by the Slovak Central Mining Bureau.”
In light of the re-issued permit, the company said that it anticipates recommencing mining activity in July, subject to further appeal. Due to ongoing judicial investigation, the company had been blocked from any mining activity since July of 2014.
According to the terms and conditions of the Kremnica Mining License Area (“KMLA”), if the company does not formally carry out any mining operations over a three year period, the mining license area reverts back to the Slovak State. The District ultimately overturned the decision after concluding there was “insufficient evidence” to support its enforcement.
Ortac Resources most considerable asset is its 1.32 million ounce gold project in Slovakia. Alongside this, the company sustains investments in Andiamo Exploration Limited, Zamsort Limited, as well as Casa Mining Limited which it recently upped its stake in to 21.75 percent.
Earlier today, shares in Ortac resources were up as much 35 percent. Currently, shares are up 18.33 percent as of 15.33PM (GMT).