Clarification from the Company Operating the Sotk Mine: Management Calls for an End to Unauthorized Strike

Employees of the company operating the Sotk mine, "GeoProMining Gold," announced a strike today and blocked a road. In response, the company issued a clarification stating, "The management has held a meeting with the strikers and offered to end the strike, return to work, and discuss their grievances and demands within the economic and administrative capabilities of the company. However, the employees, not agreeing to compromise, presented an ultimatum to the management to fix salaries (Net) at 500,000 drams regardless of the volume of work."

It should be noted that the company implements a partial bonus system according to its regulations. The driver receives a bonus based on the volume of transported goods (ton-kilometer) in addition to a fixed salary. In this regard, the company finds it necessary to provide its explanations:

1. The complaints from the employees regarding four months of unpaid salaries are unfounded. The company does not have any salary debts to its employees.
2. Each employee receives a transactional-bonus salary in addition to their fixed salary, corresponding to the actual volume of work performed.

The company management calls for an end to the unauthorized strike and urges a constructive dialogue to discuss ways to resolve the situation. In the case of further inactivity, due to production paralysis, the company will be forced to suspend production activities at the Sotk and Ararat plants and send all staff on unpaid leave.

The actions of the drivers at the Sotk mine do not comply with the requirements of Armenian legislation and cause significant damage to the company's production process, to its strategic partner-transport provider "South Caucasian Railways," which transports ore from Sotk to Ararat, to the employees, local communities, and the state budget of Armenia. The company warns that organizers of the illegal strike will be held accountable under Armenian labor legislation, labor contracts, and other regulatory acts.