Issue of Equity

RNS Number : 7972D

Chaarat Gold Holdings Ltd

02 February 2018

 

Not for release, publication or distribution to United States newswire services or for release, publication or dissemination in the United States AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES HEREIN.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction.  Any securities described in this press release have not been, and will not be, registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person (as defined in Regulation S under the US Securities Act) except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.  There will be no public offering of the securities in the United States.

Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Funds raised to advance the Tulkubash Heap Leach Project 

Road Town, Tortola, British Virgin Islands (2nd February 2018).

On 18 December 2017, Chaarat (AIM:CGH) announced that the Board had decided to conduct a private placing to raise up to US$20 million through a mixture of equity at a price of 25 pence per new Chaarat ordinary share ("Share") and short term Senior Secured Convertible Loan Notes (the "Notes") with a conversion price of 33 pence per share (the "Issue").

As announced on 21 December, by 20 December 2017 the Company had received settlement funds of US$1.545m representing an initial tranche of 4,611,940 Shares which were issued before the end of December 2017 (the "Initial Share Tranche"). Admission of the Initial Share Tranche took place on 29 December 2017.

As at 31 January 2018, the Company has received additional settlement funds of US$4,064,250 representing 12,132,089 Shares, and an additional $0.803m representing 2,397,015 Shares is due to be paid within 3 Business Days of admission to AIM of such Shares, totalling 14,529,104 (together, the "Second Share Tranche").

Application has been made for the Admission of the Second Share Tranche which is expected to take place on 7 February 2018.

As at 31 January 2018, the Company had received settlement funds of US$4,950,000 representing 4,950,000 Notes (the "Initial Notes Tranche").

In addition to the funds received with regard to the Initial Share Tranche, Second Share Tranche and Initial Notes Tranche, the directors and management of the Company have together provided expressions of interest totalling US$3,637,750 in respect of Shares and Notes. This means that as at 31 January 2018, the Company has therefore received US$15,000,000 in committed funds or funding commitments in respect of the Issue. 

On 31 January, the Company issued an updated Tulkubash Resource statement. The Board believes the update may lead to further interest in the Issue. In addition, the Company is still awaiting final responses from certain potential investors who have previously expressed interest in the Issue. Further Shares and/or Notes may be issued in the near future, and in any case by no later than 28 February 2018, for a total value not exceeding US$5m (which would bring the total value of the Issue to $20m) if further interest in the Issue materialises. 

The information contained within this announcement is deemed to constitute inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 

Enquiries: 

Chaarat Gold Holdings Limited                                             + 44 (0) 20 7499 2612

Martin Andersson - Chairman                                               [e-mail]

Linda Naylor - FD/Company Secretary

Numis Securities Limited                                                        [phone]

John Prior, Paul Gillam (NOMAD)

James Black (Corporate Broking)

 Further information relating to the Issue

The Shares have been issued and allotted as fully paid and will rank pari passu with the existing Shares.

Following Admission of the Shares, the Company's existing issued share capital will increase from 356,877,772 Shares to 371,406,876 Shares and the total number of voting rights will be 371,406,876 (the "Total Voting Rights").

The Total Voting Rights figure may be used by shareholders as the denominator for any calculation by which they will determine whether or not they are required to notify their interests in, or a change to their interest in, the issued share capital of the Company.

China Nonferrous Metals International Mining Co Ltd ("CNMIM")

Chaarat is required to give notice to CNMIM if it intends to issue any Shares for cash or non-cash consideration. CNMIM may, within 15 business days of receipt of such notice being issued in connection with any issue of Shares under the Issue or any conversion of Notes into Shares, give written notice to require Chaarat to issue such number of Shares to CNMIM, on the same terms as such issue of, or conversion of Notes into Shares, as is necessary to maintain the percentage shareholding of CNMIM in the Company prior to conversion. If and when any Shares are issued or Notes are converted, the required notice in respect of the issue of, or conversion of Notes into, Shares will be sent to CNMIM and a further announcement made, if appropriate.  CNMIM holds 22,469,289 Ordinary Shares representing 6.30% of the issued share capital of Chaarat at 31 December 2017.

NOTES TO EDITORS:

About Chaarat Gold

Chaarat Gold is an exploration and development company operating in the Kyrgyz Republic with a large, high grade resource - the Chaarat Gold Project. The Company's key objective is to become a long term, low-cost gold producer.

Chaarat aims to create value for its shareholders, employees and communities in the Kyrgyz Republic by building relationships based on trust and operating to the best environmental, social and employment standards.

Further information is available at www.chaarat.com

 

END

 

 

IOEFLLFBVLFEBBL