Chaarat Gold Holdings Ltd Joint Venture with ftay (0961T)
March 18 2019 - 3:01AM
UK Regulatory
TIDMCGH
RNS Number : 0961T
Chaarat Gold Holdings Ltd
18 March 2019
18 March 2019
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Joint Venture with Çiftay
Chaarat (AIM:CGH), the AIM-quoted gold mining company with
assets in the Kyrgyz Republic and Armenia, is pleased to announce
that it has signed a binding term sheet to enter into a Joint
Venture with Çiftay İnsaat Tahhüt ve Ticaret A.S. ("Çiftay"), the
Turkish mining and mine construction contractor, to collaborate on
the Tulkubash and Kyzyltash projects in the Kyrgyz Republic.
Highlights
-- Çiftay, a partner since 2017, which mobilised equipment to
the Tulkubash site in the Chatkal Valley last year, will be
appointed as construction and long-term mining contractor for the
Tulkubash project.
-- Under the agreement, based on an agreed valuation of US$252
million (post money) for the two assets, Çiftay will progressively
invest US$31.5 million for a 12.5% equity stake in Chaarat's mining
projects Tulkubash and Kyzyltash in the Kyrgyz Republic.
-- Çiftay's investment provides a significant amount of the
required equity for the Tulkubash project. Total capital
expenditure for the project is between US$120 and $130 million, and
after the Çiftay equity investment the vast majority of the
remaining capital expenditure is expected to be debt funded, thus
avoiding substantial dilution to Chaarat's shareholders, a key
strategic objective for the Company.
Chaarat is in the process of securing the remaining project
financing which is targeted to close in Q3 2019. Çiftay will
commence earthworks in anticipation of this, negotiated at
arms-length rates, which represent an improvement to the terms
indicated in the 2018 Feasibility Study.
Construction is ongoing at Tulkubash and the first gold
production remains on schedule for 2021. The Company continues to
advance detailed engineering and has finalized several project
components for immediate construction readiness. Çiftay has
earthworks equipment at the mine site and constructed a temporary
construction camp this winter to be ready for an early spring start
to major earthworks. The recent resource update continues to
suggest the emergence of a significant new gold district.
An updated feasibility study for Tulkubash will be published in
Q2 2019 as previously advised.
Ciftay has extensive experience as a mining and civil
engineering contractor at multiple mine sites in Turkey including
two major gold mines. Additional information about Çiftay can be
found at http://www.ciftay.com.tr/en/about.html. Definitive
agreements for the joint venture are expected to be concluded in Q2
2019.
Martin Andersson, Executive Chairman of Chaarat, said: "I am
delighted with this agreement and would like to express my sincere
gratitude to the Çiftay team for their clear expression of
confidence in Chaarat and the Tulkubash project. Çiftay's
investment represents a significant milestone for the funding of
Tulkubash and clearly demonstrates the Company's inherent value.
Further, this agreement illustrates our focus on shareholder value
and ability to creatively fund the business on accretive
terms."
Enquiries
Chaarat Gold Holdings Limited
Martin Andersson (Executive +44 (0)20 7499 2612
Chairman) info@chaarat.com
Artem Volynets (CEO)
Numis Securities Limited
John Prior, Paul Gillam (NOMAD)
James Black (Corporate Broking) +44 (0) 20 7260 1000
--------------------------------
SP Angel Corporate Finance LLP
Ewan Leggat (Joint Broker) +44 (0) 20 3470 0470
spangel.co.uk
--------------------------------
Powerscourt
Conal Walsh +44 (0)20 7250 1446
Isabelle Saber chaarat@powerscourt-group.com
Sam Austrums
--------------------------------
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 with an initial focus on
Central Asia and the FSU through organic growth and selective
M&A.
Chaarat is engaged in active community engagement programmes 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 by
building relationships based on trust and operating to the best
environmental, social and employment standards. Further information
is available at www.chaarat.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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