Kapan Acquisition - update on transaction progress

RNS Number : 7749L

Chaarat Gold Holdings Ltd

31 December 2018

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

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 absent registration except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws. There is no public offering of the securities in the United States expected. 

31 December 2018

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Kapan Acquisition - update on transaction progress

Further to earlier announcements on 30 October 2018 and 14 December 2018, Chaarat is pleased to confirm that it has now received antimonopoly clearance for the Kapan Acquisition from the State Commission for the Protection of Economic Competition of the Republic of Armenia.

The transaction is progressing as planned, with funding for the acquisition on track for closing. However, due to the upcoming public holidays in Armenia and Russia, a potential extension of the anticipated Kapan Acquisition closing date from 15 January 2019 to 31 January 2019 is currently under discussion with Kapan's vendor, PTML Holding Ltd ("Polymetal"), a subsidiary of Polymetal International Plc, and Chaarat's funding banks.

The transaction is expected to remain in all material respects as described in the Company's Re-Admission Document and accompanying announcement of 14 December 2018.  

Chaarat continues to work with Polymetal on key transitional details and is making significant progress in filling senior operational roles at the Kapan mine, identifying operational improvements and developing a detailed first 100-day plan.

As previously announced, the Company will hold a General Meeting of Shareholders to vote on the resolution to acquire Kapan. This will take place at 11:00am today, 31 December 2018 at the offices of Watson Farley & Williams LLP, 15 Appold Street, London, EC2A 2HB.  The Company will provide a further update after this meeting and thereafter as and when required.

Enquiries

Chaarat Gold Holdings Limited Martin Andersson (Chairman)	[phone]
Artem Volynets (CEO)	[e-mail]
Numis Securities Limited
John Prior, Paul Gillam (NOMAD)	[phone]
James Black (Corporate Broking)
Powerscourt
Conal Walsh	[phone]
Matthew Attwood Isabelle Saber	[e-mail]

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.

On 30 October 2018, Chaarat announced that it had entered into a binding sale and purchase agreement to acquire the Kapan mine in Armenia from Polymetal, for a consideration of US$55 million, subject to adjustments (the "Kapan Acquisition"). On 14 December 2018, the Company issued the Readmission Document relating to the Kapan Acquisition.

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.

NOTICE

This announcement includes statements that are, or may be deemed to be, "forward-looking statements".  These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "envisages", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "could", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy plans, objectives, goals, future events or intentions.  These forward-looking statements include statements regarding the Company's and the Directors' current intentions, beliefs or expectations concerning, amongst other things, investment strategy, financing strategy, performance, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Group (which, where used in this announcement, shall have the meaning given to that term in the Readmission Document) will operate.

By their nature, forward-looking statements involve risks (including unknown risks) and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  Forward-looking statements are not an assurance of future performance.  The Company's actual performance, results of operations, financial condition, liquidity and dividend policy and the development of the business sector in which the Group will operate, may differ materially from those suggested by the forward-looking statements contained in this announcement.  In addition, even if the Company's performance, results of operations, financial condition, liquidity and dividend policy and the development of the industry in which the Group will operate, are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods.

Any forward-looking statements in this announcement reflect the Company's and the Directors' current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the matters referred to above.  Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company does not undertake to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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