Chaarat Gold Holdings Ltd Fundraising of ÂGBP2.9 million
September 23 2010 - 3:31AM
UK Regulatory
TIDMCGH
Chaarat Gold Holdings Limited
Fundraising of GBP2.9 million
Road Town, Tortola, British Virgin Islands (23 September 2010)
* Issue of 6,860,000 new ordinary shares at 42p
* Proceeds to be used to accelerate the development of the Tulkubash oxide
project towards production.
Chaarat Gold Holdings Limited (AIM: CGH) ("Chaarat" or the "Company"), the gold
exploration and development company operating in the Kyrgyz Republic, is pleased
to announce that the Company, through its broker Westhouse Securities Limited,
has raised approximately GBP2.9 million (before expenses) through the issue of
6,860,000 new ordinary shares of US$0.01 each (the "Placing Shares") at a
placing price of 42 pence per share (the "Placing").
Use of Proceeds
Work on the pre-feasibility study has crystallised the development strategy of
the Company. The strategy rests on two lynch-pins; fast development of the
oxide segment of the deposit (the "Tulkubash Project") and the concurrent
preparation for development of the larger sulphide section (the "Main and
Contact Projects").
The funds raised will be used to commission a Feasibility Study and carry out
other activities which will accelerate the development of the Tulkubash Project
with the objective of commencing production by the end of 2011.
A better understanding of the mining conditions at the Main and Contact Projects
has enabled the Company to design a drilling programme focused on the
development of specific mineable blocks underpinning the desired production rate
of approximately 200,000 ounces per annum.
Following the issue of the Placing Shares there will be 141,333,900 ordinary
shares of US$0.01 in issue. The Placing Shares will, following allotment, rank
pari passu in all respects with the existing issued shares. The Placing Shares
will be issued under the existing power granted to the Directors to allot
shares. The Placing is expected to be completed at 8.00 a.m. on 24 September
2010 on admission of the Placing Shares to trading on AIM.
Commenting on the Placing, Dekel Golan, CEO of Chaarat, said:
"The continuing support from our existing shareholders at near market price is
extremely gratifying. The funds raised will be used to accelerate our plans for
the development of the Tulkubash oxide project towards production in 2011 which
will provide early cash flow ahead of the development of the main orebody."
Pursuant to the subscription agreement dated 10 July 2009 between Chaarat and
China Nonferrous Metals Int'l Mining Co Ltd ("CNMIM"), Chaarat is required to
give notice to CNMIM if it intends to issue any Chaarat shares for cash or non
cash consideration. CNMIM may within 15 business days of receipt of the notice
give written notice to require Chaarat to issue such number of Chaarat shares to
CNMIM on the same terms as the Placing Shares, as is necessary to maintain the
percentage holding of CNMIM prior to the Placing. CNMIM has given notice that
it wishes to maintain its shareholding at 19.9% following the Placing announced
on 1 July 2010 and the completion of the Kyrex acquisition announced on 27 July
2010. The shares will be in issued in due course. The required notice in
respect of the issue of the Placing Shares will be sent to CNMIM and a further
announcement made, if appropriate.
Further information about the Company:
Chaarat Gold Holdings Ltd +44 (0) 20 7499 2612
c/o Central Asia Services Ltd dekel@chaarat.com
linda.naylor@chaarat.com
Westhouse Securities Limited +44 (0) 20 7601 6100
Tim Feather tim.feather@westhousesecurities.com
Richard Baty richard.baty@westhousesecurities.com
Smith's Corporate Advisory +44 (0) 20 7321 2508
Dominic Palmer-Tomkinson tomkinson@smiths-ca.com
Conduit PR +44 (0) 20 7429 6603
Jos Simson jos@conduitpr.com
Emily Fenton emily@conduitpr.com
Note to Editors:
About Chaarat Gold
Chaarat Gold is an exploration and development company operating in the Kyrgyz
Republic. The Company's main activity is the development of the Chaarat Gold
Project situated within the Middle Tien Shan Mountains of Kyrgyzstan which form
part of the Tien Shan gold belt. The Company has thus far delineated a JORC
compliant mineral resource of 4.009 Moz at a grade of 4.14 g/t gold. A scoping
study demonstrating the economic viability of the Chaarat Gold Project was
completed at the end of 2008. The Company is currently in the process of
compiling a pre-feasibility study. Chaarat's objective is to become a low cost
gold producer targeting production of over 200,000 ounces per annum by early
2013. In addition, the Company has identified the potential of establishing an
early stage, low cost, partially open pit mine at the Tulkubash oxide project
for initial production in Q4 2011.
Disclaimer
This press release includes forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond Chaarat's control that would cause the actual results,
performance or achievements of Chaarat to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding Chaarat's present and future business strategies
and the environment in which Chaarat will operate in the future. Any
forward-looking statements speak only as at the date of this document. Chaarat
expressly disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statements contained in this document to
reflect any change in Chaarat's expectations with regard to these or any change
in events, conditions or circumstances on which any such statements are based.
As a result of these factors, the events described in the forward-looking
statements in this press release may not occur either partially or at all.
[HUG#1446298]
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Chaarat Gold Holdings Ltd via Thomson Reuters ONE
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