In a recent address at the Armenia Mining Forum in Tsaghkadzor, Joel Sutherland, the chief executive of Hayasa Metals, discussed the under-explored potential of Armenia’s subsoil and the company’s strategic plans following the departure of Teck Resources from its Vardenis project. Teck has officially terminated its option on the Vardenis property, citing that the project did not meet its advancement criteria. This decision follows a limited drilling programme that covered only a fraction of the 93 km² licence area, which Hayasa claims remains largely unexplored. Despite the setback, Sutherland expressed optimism about the future, highlighting the importance of forming a strategic alliance with a major mining company, which he hopes to finalise this year.
On 17 September, Hayasa signed a non-binding term sheet with an unnamed major mining company for exploration in southern Armenia. This agreement allows the partner to earn a significant stake in the projects by investing a total of US$4 million over five years. While the financial commitment appears modest for a company of its stature, it provides Hayasa with operational control, crucial for a junior company with limited resources. The partnership with Franco-Nevada, which acquired a 1.25% royalty over the Urasar project for US$1 million, further illustrates Hayasa’s strategy to leverage external funding while maintaining operational oversight.
The context of these developments is critical, as Armenia’s mining landscape is evolving. The country has seen significant investments, such as the US$750 million in the Amulsar gold mine, which serves as a benchmark for overcoming challenges in the sector. However, the Vardenis project is not without its controversies, as highlighted by ongoing legal disputes regarding its approvals. Sutherland is advocating for improved licensing terms, seeking longer initial terms and faster approval processes to facilitate exploration activities.
Geopolitically, Armenia’s mining sector is gaining attention, particularly for its low-value concentrates and critical minerals like selenium and tellurium. The recent US-Armenia critical minerals framework aims to modernise permitting processes, indicating a potential shift in the regulatory landscape. However, questions remain regarding the future of the Vardenis project and the identity of the unnamed major partner. As Hayasa navigates these challenges, the company’s ability to secure funding and partnerships will be pivotal in realising Armenia’s mining potential.
