Chaarat Gold Holdings Ltd Fundraise update (1149E)
October 16 2018 - 2:00AM
UK Regulatory
TIDMCGH
RNS Number : 1149E
Chaarat Gold Holdings Ltd
16 October 2018
16 October 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.
Any public offering of securities to be made in the United States
will be made by means of a prospectus that may be obtained from
Chaarat and that will contain detailed information about Chaarat
and management, as well as financial statements.
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Fundraise update
Chaarat (AIM: CGH), the AIM-quoted exploration and development
company with assets in the Kyrgyz Republic, is pleased to announce
that it has reassessed its borrowing needs and is reducing its
current convertible debt placement (the "Fundraise") from US$100m
to US$50m. This reduction significantly reduces dilution for
existing shareholders. It has been prompted by positive
developments surrounding the Company's proposed acquisition of a
polymetallic asset (the "Acquisition") as well as accelerated
project funding arrangements for the development of its Tulkubash
mine following the recent positive resource upgrade.
Further to its announcements of 28 August 2018, 6 September 2018
and 13 September 2018, Chaarat has completed the first phase of its
fundraising, receiving commitments for approximately US$17.6m from
new and existing investors.
The Company is now targeting commitments for up to US$50m in
total, and plans to raise the remaining US$32.4m to complete the
Fundraise as soon as practicable.
The Company's decision to reduce its fundraising requirements
also reduces the dilutive effects on current shareholders of a
larger fundraising. Chaarat continues to consider alternative
funding options that provide greater benefits to shareholders.
The decision stems from pleasing developments in its
negotiations over the Acquisition. The Company is in the process of
completing due diligence and finalising definitive terms, and plans
to sign the sale and purchase agreement as soon as practicable.
The positive resource upgrade at Tulkubash, as detailed in
Chaarat's announcement of 4 September 2018, has also driven the
decision to reduce the Company's current fundraising target.
Significant progress has been made to bring forward a separate,
potential US$100m project debt financing package for Tulkubash,
which is expected to reduce the upfront equity requirement to bring
the mine into commercial production.
Enquiries
Chaarat Gold Holdings Limited
Martin Andersson (Chairman) +44 (0)20 7499 2612
Artem Volynets (CEO) info@Chaarat.com
Numis Securities Limited
John Prior, Paul Gillam (NOMAD) +44 (0) 20 7260 1000
James Black (Corporate Broking)
BMO Capital Markets Limited
Jeffrey Couch, Thomas Rider (Joint
Broker) +44 (0) 20 7236 1010
Powerscourt
Conal Walsh +44 (0)20 7250 1446
Matthew Attwood Chaarat@powerscourt-group.com
Isabelle Saber
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
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END
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