Update on funds raised

RNS Number : 6356J

Chaarat Gold Holdings Ltd

03 April 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")

Update on funds raised to advance the Tulkubash Heap Leach Project 

Road Town, Tortola, British Virgin Islands (3^rd April 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 previously announced, the Company has to date received settlement funds totalling US$11,362,250, of which US$6,412,250 represents 19,141,044 Shares issued to date, and US$4,950,000 represents Notes issued to date in that amount.

In addition to those funds, 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 today, the Company has received US$15,000,000 in settled funds or funding commitments in respect of the Issue. 

On 28^th February, the Company announced to the market that it was awaiting final responses from certain potential investors who have previously expressed interest in the Issue, and that further Shares and/or Notes may be issued in the near future, and in any case by no later than 30 March 2018, for a total value not exceeding US$5m (which would bring the total value of the Issue to US$20m) if further interest in the Issue materialises. 

The Board has now decided to extend the closing of the Issue in view of the imminent publication of the results of the  Feasibility Study on the Tulkubash oxide resource (the "Project"), which is expected later this month, and other Company initiatives currently underway. The Study will provide a comprehensive update on the Project including capital and operating costs.  The Company reserves the right to increase the quantum to be raised pursuant to the Issue beyond US$20m, subject, if required, to any necessary consent of the existing loan note holders.

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)

BMO Capital Markets Limited                                               [phone]
Jeffrey Couch, Neil Haycock,
Thomas Rider (Joint Broker)

Blytheweigh (Financial PR)                                                    [phone]
Tim Blythe
Camilla Horsfall

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

 

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