What is Bill 32 and what about the remedy? We believe that the company will ultimately benefit from Law 32 of 2014, which came into force in April 2014, which limits the ability of third parties to challenge a contractual agreement between the Egyptian government and an investor. Although this law is in force and ratified by the new Parliament, it is being reviewed by Egypt`s Supreme Constitutional Court. In 1995, Pharaoh Gold Mines NL (PGM), an unlisted Australian public company, entered into an agreement with the Egyptian Geological Survey and Mining Authority and the Arab Republic of Egypt (Eastern Desert Concession Agreement) to seek gold and base metals in Egypt`s eastern desert. This agreement was introduced in 1994 in Egyptian Law 222 and came into force on 29 January 1995. Centamin was founded on March 24, 1970 in South Australia and listed on the Australian Stock Exchange on October 8, 1970. The company has had various gold, base metal and diamond projects in Australia and currently retains a licensing agreement on the Nelson`s Fleet gold project in Kambalda. What is the context of the 2005 decision to transform the Sukari concession area from an “exploration leasing” to an “operating lease”? Following the “commercial discovery” of the Sukari deposit, Centamin`s wholly owned subsidiary, Pharaoh Gold Mines NL (“PGM”) and the Egyptian Mineral Resources Authority (“EMRA”) were required, in accordance with the Sukari concession agreement, to agree on an area that was to be converted into a use contract that would then be subject to approval by the Minister of Industry on the basis of the study. A long discussion and a simple discussion with EMRA led to a possible transaction agreement in 2005, where it was agreed that the lease would be granted over an area of 160 km2, where it is today. Centamin and its subsidiaries have followed the appropriate procedures at all times, as stipulated by Egyptian law and under the terms of our concession agreement.
The 160 km2 lease was signed by the Minister of Oil (who had been replaced by the Minister of Industry at the time of the agreement) and other interested parties, and we have an original leasing document in our possession. The concession contract is actually a profit-sharing contract. As part of the agreement, Centamin`s 100% subsidiary, Pharaoh Gold Mines, will recover all historical and current exploration and development costs. After they have been recovered, the winnings are shared 50:50 with the Egyptian Mineral Resources Authority (EMRA).