Egypt greenlights new gold mine, first in over a decade

The camp at Aton Resources' Abu Marawat gold property in Egypt, with an outcropping vein in the foreground. (Image courtesy of Aton Resources.)

Canada's Aton Resources (TSX-V: AAN) became the first company in more than a decade to secure a gold mining licence in Egypt, which last year issued new regulations to ease foreign investment in the sector.

The new rules eliminated the needfor miners to form joint ventures with the Egyptian government and limits stateroyalties to a maximum 20%, measures long advocated by the private sector.

The company said the licence underscored the country's new commitment to developing its exploration and mining sector

Aton's permit is the second mining licence issue in Egypt since 2005, when Centamin (LON:CEY) (TSX:CEE) - the country's main gold producer - was granted its licence for its Sukari mine.

Aton's president and chiefexecutive, Mark Campbell, said the licence is for 20 years, with thepossibility of extending it for another 10 years. It allows the company tostart the Hamama development as well as continuing exploration at Rodruin and otherexploration targets within the Abu Marawat concession.

"It also underscores Egypt's newcommitment to developing its exploration and mining sector," Campbell said. "Egyptis a country that has vast untapped mineral potential, not only in gold, butacross all precious, base and industrial minerals."

The country, which links northeast Africa with the Middle East, has targeted $700 million in new investments in the mining and energy sectors by 2030.

(With files from Reuters)