Chaarat Gold Holdings Ltd (LON:CGH) said it will press on with its bankable feasibility study for the Tulkubash Heap Leach Project after rejecting an offer for its gold deposit in the Kyrgyz Republic.
The deal was pitched at a 30% premium to the AIM-listed company’s current market price.
While heartened by the interest, the mine developer said the approach failed to “reflect the concrete progress the company is making towards crystallising the underlying value” of its asset.
“The board remains convinced that the best and possibly only way, under current circumstances, to crystallise a more representative value for the Chaarat deposit is to continue to pursue the most effective and direct route to produce gold,” investors were told.
In September the firm raised just over £4mln to fund the bankable study for Tulkubash, which should be complete by in the second quarter of next year, with the local approval process largely concluded three months later.
Producing an estimated 60-70,000 ounces of the yellow metal a year, the mine is set to cost in the order of US$80-100mln.
At 1.30p, the shares up 4% and changing hands for 8.6p.This values the business at £30mln.