Chaarat Gold Holdings Ltd Update on Proposed Offer for the Kumtor Mine (7858F)
October 31 2018 - 3:00AM
UK Regulatory
TIDMCGH
RNS Number : 7858F
Chaarat Gold Holdings Ltd
31 October 2018
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
UPDATE ON PROPOSED OFFER FOR THE KUMTOR MINE
31 October 2018
As stated in Chaarat's announcements dated 24 April 2018 and 1
May 2018, Chaarat has previously made a proposal in relation to the
potential acquisition of the Kumtor mine from Centerra Gold Inc
("Centerra").
On 18 September 2018 the Company made a further proposal for the
all-cash acquisition of the whole of Centerra at a premium of not
less than 35% above Centerra's prevailing share price of C$5.48 at
the time of the proposal (yesterday, the stock closed at C$4.95).
The ultimate objective of this proposal was to combine the
operations of Chaarat and the Kumtor mine, as part of Chaarat's
corporate strategy to participate in consolidation in the gold
mining industry. Chaarat management requested to hold discussions
with Centerra's management and Board with a view to finding a
mutually beneficial outcome for all stakeholders. Chaarat also
provided details of its funding for the proposed Kumtor offer,
including letters of support from its debt and equity partners.
Chaarat was hoping to reach an amicable and mutually beneficial
agreement with Centerra on either of its two proposals, which would
have created meaningful value for Centerra's investors and
stakeholders, including the Kyrgyz Republic. However, Centerra's
Board and management have continually declined to engage with
Chaarat.
The Chaarat Board firmly believes in the strategic rationale for
both of its proposals, and the opportunity these provide for value
creation to all relevant stakeholders. The Board is convinced that
Chaarat is a more natural long-term owner of the Kumtor mine; and
that the proposals represented an opportunity to align the
interests of investors directly with the Government and People of
the Kyrgyz Republic, who would benefit from a 50 per cent interest
in the post-tax cash flow from the mine.
Due to the unwillingness of Centerra to engage with Chaarat, the
Chaarat Board is no longer pursuing either transaction.
Chaarat's shares remain suspended from trading on AIM pending
the publication of an Admission Document in relation to the
potential acquisition of Kapan Mining and Processing Company CJSC,
announced on 30 October 2018. The Company will provide further
updates to shareholders in due course.
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)
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.
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.
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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