The Armenian government made a decision at its Cabinet meeting Thursday to provide a budget guarantee, which is conditioned by the need to ensure the normal course of operations of Lydian Armenia CJSC.

The respective explanation states that under the agreement signed between the Ministry of Economy of Armenia and Lydian Resources Armenia Limited Joint Stock Company, 12,503 shares—equivalent to 12.5% of the company's shares—were donated to Armenia as property.

According to the results of previously conducted studies presented by the Ministry of Economy of Armenia, it is expected that the implementation of the Amulsar gold mine project will have a direct and indirect impact on the Armenian economy of about 1.0-1.5 percent of GDP annually. More than 1,000 workers will be involved in the construction of the Amulsar gold mine, and about 700 jobs will be created in the processing facilities, laboratories, and administration during the entire duration of the project's extraction or operation.

With this decision, it is proposed to provide a budget guarantee in the amount of up to $150 million.

The adoption of this draft may lead to an increase in state budget revenues, and in the event of the materialization of the budget guarantee, an increase in state budget expenditures by up to $150 million.