TIDMCGH
RNS Number : 3956T
Chaarat Gold Holdings Ltd
14 November 2019
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.
14 November 2019
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Completion of US$5.8 million Equity Capital Raise
Chaarat (AIM:CGH), the AIM-quoted gold mining company with
assets in the Kyrgyz Republic and Armenia, is pleased to announce
that it has closed a placing of new ordinary shares, raising gross
proceeds of approximately US$5.8 million from the issue of
12,892,855 new ordinary shares of USD 0.01 each ("New Ordinary
Shares") at 35 pence per New Ordinary Share (the "Placing"),
subject to the admission of the New Ordinary Shares to trading on
the AIM market of London Stock Exchange plc ("Admission"). This
comprises:
-- The subscription for 10,014,284 New Ordinary Shares by
existing and new investors including two of the leading global
institutional investors; and
-- The subscription for 2,878,571 New Ordinary Shares by Labro Investments Limited ("Labro").
The Company's current indebtedness under a committed working
capital facility with Labro announced by the Company on 14 December
2018 (RNS number 5046K) has been offset against Labro's obligation
to deliver cash due in respect of 2,878,571 shares under the
placing. The Company's obligations under the working capital
facility with Labro has decreased as a result of the set-off by
US$1.3 million and now totals approximately US$3.5 million.
In addition, 175,000 New Ordinary Shares have been issued to
satisfy the Company's obligations under a warrant agreement, the
warrants were exercised for cash at an aggregate share price of 15
pence.
An application has been made to the London Stock Exchange for
the 13,067,855 New Ordinary Shares to be admitted to trading on
AIM, and it is expected that admission will become effective and
trading of the New Ordinary Shares will commence on or around
8:00am (London time) on 19 November 2019.
Artem Volynets, Chief Executive Officer, commented:
"We are delighted to see continued support from our existing
shareholder base as well as welcome new investors into the exciting
Chaarat story. The prime motivation behind this placing was to
strengthen the institutional investor base of the Company by
providing the opportunity for institutional investors to purchase
blocks of shares and the funds will support our various growth
initiatives and strengthen our balance sheet.
We believe that the ongoing execution of our strategy, the
successful operational improvements of the Kapan mine in Armenia,
along with progress on the Tulkubash construction programme in the
Kyrgyz Republic, will make Chaarat a stronger investment prospect
for investors looking to access growth gold mining opportunities in
the FSU region."
The Company continues to evaluate opportunistic capital
opportunities to either refinance existing financing facilities,
fund working capital and/or reduce its overall cost of capital.
Possible future capital raises will also come in the form of
non-dilutive and/or value accretive transactions in the form of
additional convertible bonds or debt instruments.
Following the admission of the New Ordinary Shares described
above:
-- the Company's enlarged issued share capital will comprise
468,811,330 ordinary shares of US$0.01 each. This figure may be
used by shareholders of the Company as the denominator for the
calculations by which they will determine whether they are required
to notify their interests in, or a change to their interest in, the
Company under the Financial Conduct Authority's Disclosure Guidance
and Transparency Rules Sourcebook; and
-- Labro will hold 163,906,546 ordinary shares of $0.01 each,
representing 34.96% of the issued share capital of the Company.
Martin Andersson (the executive chairman of Chaarat) is directly
beneficially interested in the majority of the shares in Labro.
Enquiries
Chaarat Gold Holdings Limited
Artem Volynets (CEO) +44 (0)20 7499 2612
info@chaarat.com
Numis Securities Limited
John Prior, Paul Gillam (NOMAD) +44 (0) 20 7260 1000
James Black (Corporate Broking)
SP Angel +44 (0) 20 3470 0470
Ewan Leggat (Joint Broker)
Tavistock
Charles Vivian +44 (0)20 7920 3150
Gareth Tredway chaarat@tavistock.co.uk
Barney Hayward
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.
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name Labro Investments Limited
------------------------------------- --------------------------------------
2 Reason for the notification
-----------------------------------------------------------------------------
a) Position / status Person/Entity closely associated
with the Chairman
------------------------------------- --------------------------------------
b) Initial notification Initial notification
/ amendment
------------------------------------- --------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------------
a) Name Chaarat Gold Holdings Limited
------------------------------------- --------------------------------------
b) Legal entity identifier 213800T2A5CV84VTFJ70
------------------------------------- --------------------------------------
4 Details of the transaction(s): section to be repeated
for (i) each type of instrument; (ii) each type of
transaction; (iii) each date; and (iv) each place where
transactions have been conducted
-----------------------------------------------------------------------------
a) Description of the Ordinary shares of US$0.01 each
financial instrument,
type of instrument
Identification code VGG203461055
------------------------------------- --------------------------------------
b) Nature of the transaction Subscription for ordinary shares
------------------------------------- --------------------------------------
c) Currency GBP
------------------------------------- --------------------------------------
d) Price(s) and volume(s) Price(s) Volume(s)
------------------------------------- ----------------- ----------------
0.35 2,878,571
------------------------------------------ ----------------- ----------------
e) Aggregated information 2,878,571
* Aggregated volume 35 pence
GBP 1,007,499.85
* Aggregated price
* Aggregated total
-------------------------------------- ------------------------------------------
f) Date of the transaction 14 November 2019
------------------------------------- --------------------------------------
g) Place of the transaction XLON
------------------------------------- --------------------------------------
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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