Chaarat Gold Holdings Ltd Stabilization agreement with the Kyrgyz Government (0977Y)
December 27 2019 - 2:01AM
UK Regulatory
TIDMCGH
RNS Number : 0977Y
Chaarat Gold Holdings Ltd
27 December 2019
27 December 2019
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Stabilization agreement with the Government of the Kyrgyz
Republic
&
Funding Update
Chaarat (AIM:CGH), the AIM-quoted gold mining company with
assets in the Kyrgyz Republic and Armenia, is pleased to announce
that it has concluded a stabilisation agreement with the Government
of the Kyrgyz Republic in respect of the Company's Tulkubash and
Kyzyltash projects (the "Agreement") and to provide a funding
update.
The Agreement is based on the investments law of the Kyrgyz
Republic (the "Law") which stimulates investors to make substantial
investments, including ones into the country's mining industry, by
providing to them formal assurances on stability of the tax regime.
Subject to Chaarat's satisfaction of conditions specified in the
Law and in the Agreement each of Chaarat and its local subsidiary
CJSC Chaarat Zaav is entitled to benefit from any future changes of
direct taxes (including income tax, profits tax, value added tax,
royalty, property tax, land tax and bonus) and a number of non-tax
payments (including license retention fees and others, except those
to be made for services provided by public authorities) during 10
years from the date of the Agreement.
Each of the Company and its subsidiary CJSC Chaarat Zaav may
realize such benefit by choosing the most beneficial terms of
payment of taxes specified above using a procedure established by
the Kyrgyz legislation. In case any of the taxes specified above
are increased each of the Company and its local subsidiary is
entitled to apply the rates effective as at the date of the
Agreement.
Project construction continues to progress well at Tulkubash,
with first gold production on track for late 2021. The Company is
due to announce an updated Resource and Reserve statement for the
project in Q1 2020, following exploration work conducted in
2019.
Funding Update
As announced in October 2019, the Company continues to advance
project financing discussions for Tulkubash with several
international groups. The Company is on track to finalise the
project financing by the end Q1 2020 with term sheets having been
received by the relevant parties. The Company is now working
towards documentation and further updates will be made by the
Company in due course.
The Company is also considering refinancing debt maturing in Q1
2020 and possible options for the Kapan debt as well, although the
latter is optional. The objective of any possible refinancing is to
reduce the cost of capital of the overall finance charges relating
to the existing facilities and terms sheets have been received for
this refinancing. The Company continues to evaluate opportunistic
capital opportunities to refinance existing financing facilities,
fund working capital and reduce its overall cost of capital, with
an overall objective of maximising value for shareholders.
Artem Volynets, Chief Executive Officer, commented:
"I am pleased to announce the signing of the Stabilization
agreement with the Government of the Kyrgyz Republic with respect
to our Tulkubash project. This agreement shows strong support for
Chaarat in country and is a strong endorsement for the Company
going forward. This also highlights both Chaarat's and the
Government's focus on the stability of our future operations and
allows us both to continue to commit to the development of this
project.
Financing work for Tulkubash is progressing well and we are now
at the term sheet stage. We look forward to providing further
financing updates on this work and other refinancing workstreams in
Q1 2020."
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.
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
AGRTRBFTMBJTMRL
(END) Dow Jones Newswires
December 27, 2019 02:01 ET (07:01 GMT)
Chaarat Gold (LSE:CGH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Chaarat Gold (LSE:CGH)
Historical Stock Chart
From Jul 2023 to Jul 2024