Extension of Convertible Loan Notes

Chaarat Gold Holdings Ltd

27 October 2023

 

27 October 2023

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Extension of Convertible Loan Notes

Chaarat Gold (AIM: CGH), the AIM-quoted gold mining Company with development projects in the Kyrgyz Republic, announces an extension of the maturity of its secured convertible loan notes  (the "Loan Notes") from 31 October 2023 to 31 July 2024 (the "Extension Agreement").

The Extension Agreement, which required the consent of the holders of a majority in value of the Loan Notes, has been approved on the same terms as those currently applicable to the Loan Notes, and as announced on 11 August, with interest payable going forward on the capitalised amount as at 31 October 2023 of US$34.3 million.  Payment of the principal and accrued interest will be due on the earlier of the extended final repayment date of 31 July 2024, or the Final Investment Decision to proceed on the Tulkubash project by the Board of Directors of the Company, provided that no conversion or early repayment has occurred.  The Loan Notes can be repaid early in cash at the Company's option upon 10 business days' notice.

In addition to the Extension Agreement, the Company has agreed with Labro Investments Limited ("Labro"), an extension to the term of the previously announced working capital facility with Labro from 31 July 2024 to 30 September 2024. All other terms disclosed in the announcement of 12 October 2023 remain the same.

David Mackenzie, Chief Financial Officer of Chaarat, said:

"Chaarat is appreciative of the continued support from its loan noteholders. The maturity extension, combined with the recently announced working capital facility from the largest shareholder, enables Chaarat to focus on achieving the Tulkubash Final Investment Decision in an expedient manner and subsequently implement broader financing to support further corporate and asset developments of the group."

Notes:

1. If all the Loan Notes convert assuming full conversion of principal and interest to the extended maturity date of 31 July 2024, 96,564,938 ordinary shares of US$0.01 each ("Ordinary Shares") will fall due to be issued to Loan Note holders.

 2. As previously stated Labro, a substantial shareholder in the Company the majority of shares in which Martin Andersson (the executive chair of Chaarat) is interested, holds US$1.7 million of Loan Notes including accrued interest as at 31 October 2023 (the "Labro Notes"). If all the Labro Notes convert assuming full conversion of principal, interest, and fees to the extended maturity date of 31 July 2024, then 4,921,448 Ordinary Shares will fall due to be issued to Labro.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).

Enquiries:
Chaarat Gold Holdings Limited	[phone]
Martin Andersson (Executive Chair)	[e-mail]
Canaccord Genuity Limited (NOMAD and Joint Broker)	[phone]
Henry Fitzgerald-O'Connor
James Asensio
Cavendish Capital Markets Limited (Joint Broker)	[phone]
Neil McDonald
Panmure Gordon (UK) Limited (Joint Broker)	[phone]
John Prior Hugh Rich
Stifel Nicolaus Europe Limited (Financial Advisor)	[phone]
Jan-Erik Back

About Chaarat

Chaarat is a gold mining company which owns the Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic. The Company has a clear strategy to build a leading emerging markets gold company through organic growth and selective M&A.

Chaarat aims to create value for its shareholders, employees and communities from its high-quality gold and mineral deposits by building relationships based on trust and operating to the best environmental, social and employment standards. Further information is available at www.chaarat.com/.

ENDS

 

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