Chaarat Gold Holdings Ltd (AIM:CGH) plummeted more than 50% as it unveiled a rescue refinancing that sees its current shareholders left holding just 4.3% of the Asia-focused gold junior.
Current convertible note holders and lenders end up with 76.5% of the business while former executive chairman Martin Andersson and his vehicle Labro get a combined 19.2%.
Gordon Wylie, chairman, commented: “The proposed recapitalisation enables Chaarat to reduce its existing liabilities by more than 50% to under US$20 million, with revised maturity for its debt and a new working capital facility of up to US$5 million both of which extend to December 2025, thereby allowing the company to focus on maximising the value of its Kyrgyz Republic assets.”
Chaarat'a AIM listing will be cancelled if shareholders approve the proposals.
Shares in the explorer dropped 0.48p to 0.35p.