logo-loader

Chaarat Gold raising US$20mln for Tulkubash, with US$15mln already committed

Published: 08:27 18 Dec 2017 GMT

1513585897_shutterstock_249210421-(1)
Tulkubash could develop into a significant mid-tier gold mine

Chaarat Gold Holdings Ltd (LON:CGH) is undertaking a US$20mln fundraising to allow it to progress with plans to develop a heap leach gold mining operation at Tulkubash in Kyrgyzstan.

The money will be raised through a mixture of equity and short term senior secured convertible loan notes.

READ: Chaarat on track for completed feasibility study by end of first quarter 2018

It will also allow for the continued exploration of the oxide deposit during 2018.

The equity portion will be priced at 25p per share, while the notes will convert at 33p.

So far there have been US$15mln of commitments received, including participation from management and directors of the company.

The proceeds will position the company to deliver full construction financing in Q2 2018 and deliver effective execution of mine construction while continuously driving shareholder value through oxide resource expansion.

"Following the success of our exploration programme throughout 2017, securing the funding to commit to a similar programme in 2018 will allow Chaarat to deliver on its goal of developing the Tulkubash heap leach project at a significant scale,” said Chaarat chief executive Robert Benbow.

READ: Chaarat Gold sees 3km of mineralisation at Tulkubash

”I look forward to announcing the updated resource in January 2018 and the results of the Tulkubash definitive feasibility study in Q1 2018."

Chaarat Gold makes strong progress with Tulkubash open-pit project in the...

Chaarat Gold Holdings Ltd (AIM:CGH) chief financial officer David Mackenzie joined Proactive's Stephen Gunnion with an overview of the company's operations in the Kyrgyz Republic, where it is advancing two significant projects on the same license: Tulkubash and Kyzyltash. Tulkubash, an...

on 23/1/24