Euromax Resources Ltd. is preparing for a potential lawsuit against the government of North Macedonia, which terminated a concession agreement for the Ilovica 6 property, part of the Ilovica-Shtuka copper-gold project.

In late September, a North Macedonian state commission rejected the company's appeal against the economic ministry's decision not to grant an exploration permit.

The company said Dec. 17 that the government made a political decision that contradicted its recent statements saying that it would wait for the Macedonian Administrative Court to rule on the matter.

Euromax said it hired international law firm LANSKY GANZGER & Partner to prepare the company for arbitration and is prepared to exhaust all domestic and international legal remedies.

The company noted that the Ilovica 11 concession remains unaffected.

CEO Varshan Gokool said the company, which he said was North Macedonia's largest foreign direct investment partner, had been treated "more than shabbily" by the government, and the local community would "lose out most by this government decision."