viewChaarat Gold Holdings Ltd

Chaarat Gold Hlgs Ld - Grant of waiver

RNS Number : 4619P
Chaarat Gold Holdings Ltd
10 June 2020

10 June 2020



Chaarat Gold Holdings Limited


("Chaarat" or the "Company")

Registered office: Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands, VG1110

Registered number: 1420336 (incorporated in the British Virgin Islands)

Legal Entity Identifier: 213800T2A5CV84VTFJ70


Grant of waiver


Chaarat (AIM:CGH), the AIM-quoted gold mining company with assets in the Kyrgyz Republic and Armenia, announces that Chaarat's board of directors (the "Board") has exercised its discretion to waive the requirement for a mandatory offer for the Company by Labro Investments Limited ("Labro") upon the acquisition of up to 3,000,000 ordinary shares of US$0.01 each in the Company ("Ordinary Shares") in the market, subject to such purchases being completed by 5.30pm UK time on 31 August 2020 and subject to receipt of all approvals required under the Company's share dealing code (the "Labro Share Purchase").


Shareholders will recall that Labro holds:


202,828,442 Ordinary Shares representing approximately 38.67 per cent of Chaarat's issued share capital; and


Loan Notes for US$1,000,000 (the "Loan Notes") convertible into 2,849,330 Ordinary Shares assuming full conversion of principal and interest to maturity.


There is a provision in the Company's Articles of Association (the "Articles") (Article 19) which states that the Board has the right to require any holder of more than 20% of the Ordinary Shares to make a mandatory offer to all the Company's shareholders to acquire their Ordinary Shares if they acquire an additional interest in any Ordinary Shares. The Board has previously exercised its discretion to waive the requirement for a mandatory offer when Labro (which holds more than 20% of the Ordinary Shares) has acquired additional Ordinary Shares.


The Board most recently exercised the same discretion for the acquisition of up to 3,000,000 Ordinary Shares by Labro in the market (as announced on 24 February 2020).  Labro did not acquire any Ordinary Shares pursuant to that waiver, which expired on 31 May 2020.


If the maximum number of Ordinary Shares permitted to be purchased pursuant to the Labro Share Purchase are acquired within such a period by way of the acquisition of existing Ordinary Shares in accordance with the Waiver (and assuming no issue of Ordinary Shares during such period by the Company, including on exercise of existing options issued by the Company or on conversion of any convertible loan notes issued by the Company), Labro would hold 205,828,442 Ordinary Shares representing 39.24% of the issued share capital as at today's date.  If all Loan Notes were subsequently converted (assuming full conversion of principal and interest to maturity) and no options to subscribe for Ordinary Shares issued by the Company were exercised, no other convertible loan notes issued by the Company were converted and no other Ordinary Shares were issued), Labro would hold 208,677,772 Ordinary Shares representing 39.57% of the resulting enlarged share capital.


Mr Martin Andersson, who is indirectly beneficially interested in the majority of shares of Labro, is beneficially interested in 5,829,996 Ordinary Shares and, pursuant to restricted share awards and share options granted by the Company to Mr Andersson, may become entitled to a further 18,474,057 Ordinary Shares. If Mr Andersson were to acquire all the shares to which he may become entitled, on a combined basis, Labro and Mr Andersson would together hold 232,981,852 Ordinary Shares representing 42.85% of the resulting enlarged share capital.


The Company is grateful to Labro and its shareholders for their continued support.


- ends -




Chaarat Gold Holdings Limited

+44 (0)20 7499 2612

Artem Volynets (CEO)

[email protected]

Numis Securities Limited

+44 (0) 20 7260 1000

John Prior, Paul Gillam (NOMAD)

James Black (Corporate Broking)

SP Angel Corporate Finance LLP

+44 (0) 20 3470 0470

Ewan Leggat (Joint Broker)

Tavistock Communications Limited

+44 (0)20 7920 3150

Charles Vivian

[email protected]

Gareth Tredway

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.


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Quick facts: Chaarat Gold Holdings Ltd

Price: -

Market: AIM
Market Cap: -

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