Chaarat Gold Holdings Ltd Extension of Convertible Loan Notes (8142P)
October 21 2021 - 5:30AM
UK Regulatory
TIDMCGH
RNS Number : 8142P
Chaarat Gold Holdings Ltd
21 October 2021
21 October 2021
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Extension of Convertible Loan Notes
Chaarat Gold (AIM: CGH), the AIM-quoted gold mining Company with
an operating mine in Armenia, and assets at various stages of
development in the Kyrgyz Republic, is pleased to announce the
successful extension of the maturity of its secured convertible
loan notes 2021 (the "Loan Notes") from 31 October 2021 to 31
October 2022 (the "Extension").
The Loan Notes had a conversion price of approximately
GBP0.37(1) per share and a 10% interest rate per annum which
increased to 12% per annum effective 30 April 2020. The Extension,
which required a simple 50.1% majority to approve, has been
approved on the same terms as those currently applicable to the
Loan Notes but with an adjusted conversion price of GBP0.30(2) per
share. A single interest payment will be due on the extended final
repayment date of 31 October 2022 provided that no conversion or
early repayment has occurred. The Loan Notes can be repaid early in
cash upon 10 business days' notice.
As of 31 October 2021, the principal amount outstanding of the
Loan Notes would have been US$ 19.68 million plus accrued interest
of US$ 6.68 million.
If all the Loan Notes convert on their amended terms, 70,221,958
ordinary shares of US$0.01 each ("Ordinary Shares") will fall due
to be issued to Loan Note holders assuming full conversion of
principal and interest to the extended maturity date of 31 October
2022.
As previously stated Labro Investments Limited ("Labro"), a
substantial shareholder in the Company the majority of shares in
which Martin Andersson (the executive chairman of Chaarat) is
interested, holds US$ 1.0 million of Loan Notes excluding accrued
interest (the "Labro Notes"). If all the Labro Notes convert on
their amended terms, 3,579,088 Ordinary Shares will fall due to be
issued to Labro assuming full conversion of principal and interest
to the extended maturity date of 31 October 2022.
An update on the broader financing considerations of the Company
will be provided with the Q3 2021 operational update.
Chris Eger, Chief Financial Officer of Chaarat, said:
"Chaarat had good discussions with the note holders and is
grateful for the continued support with a solution beneficial to
all parties. The maturity extension allows the Company to continue
its organic and other growth plans."
Notes
(1) The original conversion price was, for each US$250,000 of
Loan Notes, 527,871 Ordinary Shares (and pro rata for any amounts
less than US$250,000). This equated to GBP0.37 per share at the
then prevailing exchange rate of US$1.28 / GBP1.
(2) The amended conversion price agreed for the purposes of the
Extension is, for each US$250,000 of Loan Notes, 611,290 Ordinary
Shares (and pro rata for any amounts less than US$250,000). This
equates to GBP0.30 per share at an exchange rate of US$1.36 /
GBP1.
Enquiries
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
Patrick Henze (VP Corporate Development info@chaarat.com
& IR)
Canaccord Genuity Limited (NOMAD and + 44 (0)20 7523
Joint Broker) 8000
Henry Fitzgerald-O'Connor
James Asensio
+44 (0)20 7220
finnCap Limited (Joint Broker) 0500
Christopher Raggett
+44 (0)20 7886
Panmure Gordon (UK) Limited (Joint Broker) 2500
John Prior
Hugh Rich
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 the
FSU through organic growth and selective M&A.
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/ .
ENDS
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCVFLBLFBLXFBQ
(END) Dow Jones Newswires
October 21, 2021 05:30 ET (09:30 GMT)
Chaarat Gold (LSE:CGH)
Historical Stock Chart
From May 2024 to Jun 2024
Chaarat Gold (LSE:CGH)
Historical Stock Chart
From Jun 2023 to Jun 2024