IMC Exploration Group plc (LON:IMC) has announced that the Company’s 100% owned mining subsidiary, ASSAT LLC has entered a contract with TTH Limited, a specialised mining and geological consulting company, to complete a works programme to facilitate the Karaberd underground mining project.
Under the terms of the contract, the Contractor will deliver the following three distinct work streams at the Karaberd project under the instruction of ASSAT:
· Laboratory reconstruction: Provision of professional consultancy, equipment selection, and technological design aimed at increasing the deposit’s laboratory processing capacity up to 30 samples per day. Timeline: Up to 3 months from signing.
· Exploration programme: Development and preparation of a formal programme for further geological and deposit exploration using the Contractor’s own resources. Timeline: Up to 2 months from signing.
· Underground works surface preparation: Preparing the surface topography of the deposit for the commencement of underground mining operations, including the physical relocation of up to 5,000 tonnes of rock and associated ore. Timeline: Up to 2 months from signing.
Financial Terms and Value
The gross estimated financial value of the contract works is approximately AMD 75,000,000 (approximately €178,500), structured across fixed fees, advance payments, and a profit-share performance mechanism:
I. A fixed laboratory consultancy fee
II. A fixed exploration programme fee
III. Underground surface prep works: An initial advance payment of AMD 20,000,000 (c.€47,600) against an estimated total work value of approximately AMD 50,000,000 (c.€119,000).
IV. Performance-linked remuneration: Final balancing payments for the underground preparation works will be calculated dynamically based on the quality of the associated ore extracted during surface clearance. The Contractor’s final service fee for this component will be capped at 20% of the profit derived from processing the extracted ore. ASSAT is contractually obligated to provide all material, human, and resource requirements to facilitate the works, and will ensure the safe storage of all extracted raw materials.
ASSAT CEO, Armand Pinarbasi, commented: “This contract represents a key operational milestone for the Group. Upgrading the deposit laboratory’s throughput directly accelerates assay turnaround times, while the surface relocation of 5,000 tonnes of rock paves the physical pathway for upcoming underground development.”
Other Group Developments in Armenia
Gold production: ASSAT continues to concentrate the grammes per tonne gold in its ore at the Megradzor plant (c. 4,000 tonnes per month) and to process gold to 0.997 purity at the Masis plant. It is expected that with the addition of three more electrodes to the Masis plant and the laboratory reconstruction mentioned earlier that 50kg of gold will be produced over the next 12 months.
Silver production: The Company expects to choose a suitable plant solution following a visit to the forthcoming International Industrial Show in Italy. The objective is to have the silver production plant in place by end October / early November 2026 with an estimated production of 50kg of silver over the next 12 months.
AMX Dual Listing: Preparations are continuing, along with the assistance of the Company’s advisers, Grant Thornton, in relation to this listing. A suitable date will be chosen based on concurrent positive Group developments.
IMC Chairman, Eamon O’Brien, commented: “We are pleased to announce the signing of this comprehensive consultancy agreement with TTH Consulting as we rapidly accelerate toward commercial underground mining operations in Armenia. By partnering with a proven industry leader, we are de-risking our production timeline, increasing the likelihood that we will achieve our 50kg annual gold production milestone, and ensuring our operations meet the highest international standards along with the transfer of specialized technical skills to our local Armenian workforce. Combined with our upcoming silver production initiatives and ongoing AMX dual-listing preparations, I believe that, as we move through the final stretch of 2026, this year will continue to be a transformative period of value creation for our shareholders. “
