EMED Mining has 'limited exposure' to proposed levy on deposits in Cyprus

AIM-listed Europe-based minerals development and exploration company, EMED Mining, has noted the announcement by authorities in Cyprus of a proposed one-off levy of 6.75 per cent to 9.9 per cent on bank deposits.

Based on the company's preliminary enquiries, the yet to be published legislation would have the effect of imposing a levy on EMED Mining of approximately€20,000 if applied to its bank deposits in a Cypriot bank and creates contingent liability for an additional amount of approximately €250,000 if it is also applied to a UK bank deposit which the company administers via the bank's Cyprus branch.

The company added that it understood that the levy would not apply to its other bank deposits.

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EMED Mining was founded in 2005 with the primary goal of redeveloping the former Rio Tinto open-pit copper mine near Seville in Spain. Mining ceased in 2000 due to low copper prices and the company aims to restart the mine in the second half of 2013.

Its second principal asset is the Biely Vrch gold project in Slovakia, where a preliminary economic assessment indicates substantial economic viability for development.

EMED Mining's share price was up 1.01% to 12.50p at 13.47 on Monday.

MF