Chaarat Gold Holdings Ltd Extension of Convertible Loan Notes (0059J)
August 11 2023 - 2:00AM
UK Regulatory
TIDMCGH
RNS Number : 0059J
Chaarat Gold Holdings Ltd
11 August 2023
11 August 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
an operating mine in Armenia, and assets at various stages of
development in the Kyrgyz Republic, announces the extension of the
maturity of its secured convertible loan notes 2023 (the "Loan
Notes") from 31 July 2023 to 31 October 2023 (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
but with interest as at 31 July 2023 and the fee for the extension
granted in October 2022 being capitalised as at 31 July 2023 and,
with effect from 1 August 2023 being subject to interest at the
rate of 20%. Therefore, with effect from 1 August 2023, the
principal amount of the Loan Notes became US$31.7 million which
will incur interest at the new rate of 20%. Additionally, a one-off
fee of US$1.0 million (being 5% of the original principal amount of
the Loan Notes) will be payable to Loan Note holders as
remuneration for the Extension Agreement (the "Extension Fee"). A
single interest payment together with the Extension Fee will be due
on the extended final repayment date of 31 October 2023 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, the Company has agreed that a representative of the
holders of the Loan Notes may join the board of Chaarat until such
time as the Loan Notes together with accrued interest and the
Extension Fee have been repaid in full. A further announcement will
be made once pre-appointment formalities have been completed and
the appointment is made.
As of 31 October 2023, if not repaid early, the total
outstanding balance of the Loan Notes will be US$34.3 million. This
consist of; principal amount outstanding of the Loan Notes as at 31
October 2023 of US$31.7 million plus accrued interest of US$1.6
million and extension fee of US$1.0 million.
If all the Loan Notes convert assuming full conversion of
principal, the Extension Fee and interest to the extended maturity
date of 31 October 2023, 83,807,564 ordinary shares of US$0.01 each
("Ordinary Shares") will fall due to be issued to Loan Note
holders.
As previously stated Labro Investments Limited ("Labro"), a
substantial shareholder in the Company the majority of shares in
which Martin Andersson (the executive chair of Chaarat) is
interested, holds US$1.6 million of Loan Notes including accrued
interest and extension fees as at 31 July 2023 (the "Labro Notes").
If all the Labro Notes convert assuming full conversion of
principal and interest to the extended maturity date of 31 October
2023 , then 4,271,267 Ordinary Shares will fall due to be issued to
Labro.
Mike Fraser, Chief Executive Officer of Chaarat, said:
"Chaarat is appreciative of the continued support from its loan
noteholders. The maturity extension allows the Company to focus on
identifying broader financing solutions to support the corporate
and asset development needs of the group."
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
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
Mike Fraser (Chief Executive Officer) info@chaarat.com
Canaccord Genuity Limited (NOMAD and + 44 (0)20 7523
Joint Broker) 8000
Henry Fitzgerald-O'Connor
James Asensio
+44 (0)20 7220
finnCap Limited (Joint Broker) 0500
Christopher Raggett
Panmure Gordon (UK) Limited (Joint +44 (0)20 7886
Broker) 2500
John Prior
Hugh Rich
About Chaarat
Chaarat is a gold mining company which owns the Kapan operating
mine in Armenia as well as 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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