Lydian International Ltd. were almost 14% higher by Dec. 24 trading close in Toronto after announcing that it secured an extension for the forbearance agreement and secured funding of up to C$18.6 million as the company reviews strategic alternatives.
The company continues to face anti-mining demonstrations and blockades at its Armenian Amulsar gold project site, where its contractors have been unable to enter since late June.
The mine was previously expected to start production in the fourth quarter.
The company's senior lenders, stream financing providers, and equipment financiers have agreed to temporarily suspend all principal and interest payments until June 30, 2019, or until it breaches its creditor financing or forbearance agreements, whichever happens first.
Lydian will also receive funding of up to C$18.6 million during the forbearance period from Orion CO IV (ED) Ltd., Resource Capital Fund VI LP and Osisko Bermuda Ltd.
The facility will be available for the first half of 2019, maturing at the end of that period.
Interest will accrue at 15% per annum and includes a further 3% fee paid by original issue discount at each drawdown.
If Orion and either RCF or Osisko believe the companies will not be able to finalize any strategic alternatives by June 30, 2019, they can terminate the forbearance agreement.
The company's previously announced forbearance agreement with its senior lenders, stream financing providers and equipment financiers was set to expire Dec. 31.
Previously in December, an Armenian administrative court agreed to hear Lydian International Ltd.'s appeal against a regulatory decision that halted work at Amulsar, pending further environmental assessment.