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Chaarat well set up to support aggressive growth strategy

Published: 07:44 11 Jun 2018 BST

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Chaarat aims to transform itself into a regional gold mining champion

Chaarat Gold Holdings Ltd (LON:CGH) ended 2017 with just over US$7mln in the bank, after booking a pre-tax loss of US$18mln during the year.

The loss included a US$10mln impairment charge for assets under construction, as Chaarat continues to advance its Tulkubash gold project in Kyrgyzstan.

READ: Chaarat Gold has ambitious plans to become a major regional player in Central Asia

More significant for the long-term future of the company was the marked change in tone and personnel that took place during 2017. Several key hires were made by chairman Martin Andersson, and a new growth strategy was initiated.

The first real indication of what this might look like came in 2018, post the financial year-end, when Chaarat announced a bold plan to acquire Centerra’s Kumtor mine.  

At the same time it became apparent that the new-look Chaarat has significant financial strength in depth.

In 2017 the company raised US$15mln in convertible loan notes to fund the exploration and feasibility study work for Tulkubash. 

This was augmented by a further issue of convertible loan notes and equity in December 2017 and the first half of 2018, with a further US$15mln of funds committed, including expressions of interest totalling US$3.6mln from directors and management.

“During 2018, we expect to raise further capital to fund our ongoing exploration plans, accelerate the construction of Tulkubash, re-pay existing borrowings due September 2018 and allow our mergers and acquisition activity to advance,” said chief executive Robert Benbow. 

“Our fundraising process is well underway, with potential term sheets for debt, equity and alternative financing solutions having been received.  We are encouraged by the relationships and quality dialogues we have had with both local and global institutions.”

 

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...

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