Auryx Gold Corp. advises that the Minister of Mines and Energy of Namibia, the Honourable Isak Katali, clarified by way of a media statement on May 10, 2011 that:
1) Existing exploration and mining licenses (EPLs and MLs respectively) will not be affected by the above change in policy.
2) Previously submitted but as of yet approved applications for EPLs and MLs will be evaluated under the existing procedure. However, the licenses might be granted with the condition of offering the Government of Namibia (or the State-owned mining company, Epangelo Mining Company) a right of first refusal on future capitalization of the licenses.
3) ML applications arising from currently granted EPLs would be treated as described in item 2.
4) New licenses for “strategic minerals” should only be issued to a State owned company. Subsequent to the approval of the licenses by the Ministry of Mines and Energy, the State-owned company (Epangelo) may enter into joint ventures with interested parties for exploration and development.
The management of Auryx view these proposed changes as having no material impact upon its business activities in Namibia.
Auryx’s Otjikoto Gold deposit is located within EPL 2410 which was recently renewed for a period of two years, as of 15 September 2010. EPL 2410 consists of more than 54,000 ha which hosts 40 km of favourable strike. Of that 40 km only the 3 km which hosts Otjikoto has been significantly tested. The company has a further 360,000 ha of current EPL’s within Namibia and another 500,000 ha of EPL applications pending approval.