Chaarat Gold Holdings Ltd Agreement with Polymetal (1569H)
July 30 2019 - 2:02AM
UK Regulatory
TIDMCGH
RNS Number : 1569H
Chaarat Gold Holdings Ltd
30 July 2019
30 July 2019
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Agreement with Polymetal
Chaarat (AIM:CGH), the AIM-quoted gold mining company with
assets in the Kyrgyz Republic and Armenia, is pleased to announce
that following discussions related to the acquisition of the Kapan
mine acquired in January 2019 from Polymetal International Plc
("Polymetal"), Polymetal has agreed to exchange its US$10m of
Convertible Notes received as part of original consideration, and a
working capital settlement under the SPA for 14,638,020 newly
issued ordinary shares of USD 0.01 each ("New Shares"). This shall
represent 3.5% of the enlarged fully diluted share capital of
Chaarat post allotment. The New Shares shall be subject to a twelve
month lock-up arrangement and Polymetal shall grant a right of
first refusal effective from the end of the lock-up arrangement for
six months in the event of the sale of those New Shares to
Chaarat.
As a part of this arrangement Chaarat Gold International
Limited, a wholly owned subsidiary of Chaarat, has also agreed to
release Polymetal from warranties and indemnities under the sale
and purchase agreement on acquisition of Kapan except for a limited
number of reserved matters.
Chaarat is grateful to Polymetal for its continued support,
which has been reaffirmed in the current agreement, and looks
forward to continuing its mutually beneficial commercial
partnership with the company.
Artem Volynets, Chief Executive Officer of Chaarat, said: "We
are delighted to welcome this experienced operator on to our
shareholder register. Polymetal's decision to exchange its debt for
shares in Chaarat is an endorsement of our strategy and prospects,
implies a premium to our current market value, and reduces our debt
levels."
Enquiries
Chaarat Gold Holdings Limited
Martin Andersson (Executive
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
Sam Austrums chaarat@powerscourt-group.com
About Chaarat Gold
Chaarat Gold 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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