Armenia is well known for its mineral resources and long mining history. In recent years, exploration activities and mining investment has been on the increase, companies such as Dundee, Tamaya Resources, Freeport, McMoran, Global Gold, Alrosa and others now have operations in Armenia.

The country is privatized, democratic and currently undergoing rapid growth. According to the Heritage Foundation / Wall Street Journal, the country is perceived as having the most liberal investment and trade regime in the Commonwealth of Independent States (CIS), the former Soviet Republics. Armenia's Index of Economic Freedom for 2007 is above the European average.

There is an independent Judiciary and laws protecting foreign investors. Armenia is a member of the World Trade Organisation, is a signatory to the International Convention on Investment Disputes and is a member of the International Centre for the Settlement of Investment Disputes (ICSID).

Armenia forms part of Lydian's Caucasus exploration joint venture with Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation (NYSE & ASX: NEM; TSX: NMC), covering what are believed to be highly prospective gold belts in Armenia and Georgia. The joint venture is a 50%-50% contribution. Lydian is the manager and has the option to own up to 100% of any discovery.

Newmont has two options to increase its interest. The first is an option to earn a further 20% by funding the project through to feasibility; the second option allows Newmont to earn a further 10% by funding through to commercial production. At commercial production Lydian is to pay back its "share" of funds plus interest, advanced by Newmont from 85% of its share of dividends and distributions. Interests for non-contributing results in dilution by a standard formula. There are no claw-back agreements and interests can be freely transferred with a first right offered to the other party.