Chaarat Gold Holdings Ltd New US$10 million loan agreement (4076H)
November 15 2018 - 2:01AM
UK Regulatory
TIDMCGH
RNS Number : 4076H
Chaarat Gold Holdings Ltd
15 November 2018
15 November 2018
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
New US$10 million loan agreement
Chaarat (AIM:CGH), the AIM-quoted exploration and development
company with assets in the Kyrgyz Republic, is pleased to announce
that it has entered into a loan agreement (the "Loan") with a
previous note holder in the Company, to secure funding of
US$10,000,000.
The loan proceeds will be applied to Chaarat's goal of building
a leading emerging markets gold company with an initial focus on
Central Asia and the FSU, and to support the Kapan acquisition
announced on 30 October 2018.
Artem Volynets, Chief Executive Officer of Chaarat, said: "This
new financing agreement is a clear expression of confidence in
Chaarat's management and growth strategy. The Loan demonstrates our
ability to raise capital. It also reflects Chaarat's commitment to
finance the Company's strategy while managing dilution and cost of
capital through a combination of debt, hybrid and equity
instruments."
Terms of the Loan
The Loan is for the amount of US$10,000,000 and is guaranteed by
the Company's subsidiary Zaav Holdings Limited. It has been
financed by a previous loan note holder who is neither management
nor a board member. The Loan is repayable after six months or, at
the Company's option, nine months. The total interest which shall
accrue on the Loan shall be a fixed amount of 6.5% of the loan
amount if the Loan is repaid within six months or 9.75% of the loan
amount if the Loan is repaid within nine months (in each case
whether or not repaid prior to the end of such period). The Loan
contains various representations, undertakings and events of
default which are common for a loan of this nature.
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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