An arbitrator has ruled that Granges Exploration and Hycroft Resources and Development will not have to pay a royalty to the lessor of the Lewis mine property, a small heap leach operation in Nevada. The Lewis mine lease was assigned to the companies by The Standard Slag Co. which led to the arbitration proceedings. Granges is the largest single shareholder in Hycroft with more than 51%. Frank W. Lewis, the original lessor, disputed the assignment which was recently found to be valid. In a joint news release, the companies note “the arbitrator has decided all significant issues in favor of Granges and Hycroft.” Granges President Mike Muzylowski doubts whether the decision can be appealed.
With the dispute cleared up, Hycroft will now be able to proceed with capital improvements to the Lewis mine. The improvements were deferred pending the outcome of the arbitration.
The most important item to be installed at the mine site is a larger 7-ft tertiary crusher which will increase gold production from the present rate of 65 oz per day to more than 75 oz. Production is expected to reach the planned rate of approximately 25,000 oz gold per year by month-end, says Hycroft. The 3.5- million-ton-per-year facility at the adjacent Crofoot mine, which is also owned by Hycroft, is proceeding on schedule.
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