Vallex Group`s statement: We are ready to unite efforts with the Government to resolve the situation around Teghout as soon as possible

ArmInfo. The Teghout mining complex is a modern high-tech enterprise, which has already played a significant role in the economic development of the region and has great potential to play this role in the future. This is stated in the statement of the Vallex Group of Companies operating the Teghout field.

The document received by ArmInfo notes that inaccurate information spread by a number of media outlets forced the company to come up with additional explanations regarding the situation around the field. The statement, in particular, emphasizes that the Teghut mining complex was created by the Vallex group of companies within the framework of the investment program, for the financing of which both borrowed funds and the company's own funds were used. Before the start of the program, as of December 31, 2014, $ 352 million was invested in the project, of which $ 308 million was provided by VTB Group and $ 44 million were the Group's own funds. In the course of its activities, as of August 31, 2018, $ 110 million was allocated to service the principal amount of the loan and repay interest rates, as well as commission payments.

Due to the management of risks associated with ensuring environmental protection, JSC Teghout was forced to suspend its activities, which caused difficulties in servicing the loan from VTB Bank. In this situation, the bank took possession of the company's shares, demanding a full refund. "According to our estimates, the bank exercised this right illegally. As a result, the Vallex group did not have the opportunity to participate in the management of the mining complex," the statement said. The Group is currently challenging the lawfulness of the seizure of Teghout shares, but has not filed a lawsuit against Teghut and has no intention to interfere with the activities of the mining complex in any way.

"We urge all interested parties to refrain from publishing the unreasonable debt of the Vallex group to VTB Bank (for example, that the group owes the bank $ 380 million), since such statements may influence the consideration of the lawsuit. Companies of the Vallex Group, which for many years have been the largest enterprises in the Lori region of Armenia,  consider it to be a field of social responsibility and are interested in stabilizing the socio-economic situation in the region. We highly appreciate the efforts of the government aimed at resumption of Teghout and Armenian Copper Program's activities and are ready to join efforts with the Armenian government to resolve the situation as soon as possible. One of the proofs of the importance of social stability in the region is that all of the staff of Armenian Copper Program were paid salaries from the personal funds of the Valex Group's chairman Valeri Mejlumyan, despite the fact that the company does not work and does not yet have any prospects for the resumption of its activities. Salary payments are due solely to Valeri Mejlumyan's social responsibility, and not by any other factor, "the statement reads.

To note, Vallex Group was established in 1998 and unites 20 subsidiary and affiliated companies. Among them is Teghut CJSC, founded in May 2006, 100% of the shares of CJSC belong to Teghout Investments Limited of Cyprus, 100% of whose voting shares in turn belong to Armenian Copper Program CJSC, which is fully owned by Valeri Mejlumyan, and also CJSC Base Metals, which operates the copper-gold deposit in the village of Drmbon, Martakert region, NKR, Armenian Copper Program CJSC (ACP), which operates the Alaverdi Copper Smelter.