Rejection of a conditional cash offer & BFS update

RNS Number : 7582M

Chaarat Gold Holdings Ltd

18 October 2016

 

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Rejection of a conditional cash offer and update on Feasibility Study

Road Town, Tortola, British Virgin Islands (18^th October 2016)

Chaarat (AIM - CGH), the AIM quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to provide the following update.

The preparation of the Bankable Feasibility Study for the Tulkubash Heap Leach Project is progressing on schedule. Drilling on site continues despite the recent snow falls and the first batch of ore to be extracted for further metallurgical testing is in transit to UK laboratories.  The initial results from the geotechnical drilling have confirmed the suitability of our proposed layout for the Project.  A visit to verify the results of the positive evaluation of the Heap Leach Project amongst the local communities has been successfully completed.

It is with this background of continuing progress to production that we were pleased to receive an expression of interest in the form of a cash offer (subject to legal and other due diligence) to buy the Chaarat deposit. The price indicated was at a premium of approximately 30 per cent. to the current market price of the Company's shares.  The Board is encouraged by this expression of interest so soon after the announcement of the Company's refreshed focus on taking the Project into production. 

However, the Board is of the view the current price of Chaarat's shares, including the premium to that price indicated in the expression of interest, does not reflect the concrete progress the Company is making towards crystallising the underlying value of the Chaarat deposit.

So, after due consideration, and in line with the Company's strategic focus on achieving production as announced on 20 September 2016, the Board has decided not to pursue this expression of interest.   The Board is primarily focused on production and, while open to all serious expressions of interest from potential partners, will only pursue expressions of interest which it believes adequately reflect the true value of the Chaarat deposit, or can meaningfully contribute to the implementation of our strategy.

The Board remains convinced that the best and possibly only way, under current circumstances, to crystallise a more representative value for the Chaarat deposit is to continue to pursue the most effective and direct route to produce gold.

Enquiries:  

Chaarat Gold Holdings Limited	+ 44 (0) 20 7499 2612
c/o Central Asia Services Limited	[e-mail]
Dekel Golan   CEO                   Linda Naylor  FD
Numis Securities Limited	[phone]
John Prior, Paul Gillam (NOMAD) James Black (Broker)

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 low cost gold producer generating significant production from the development of the Chaarat Gold Project. Chaarat is engaged in an active community engagement programme to optimise the value of the Chaarat investment proposition. 

Chaarat aims to create value for its shareholders, employees and communities from its high quality gold and mineral deposits 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

 

 

MSCMRBRTMBMBBPF