Chaarat Gold Holdings Ltd (LON:CGH) has raised US$15mln through the issue of short term senior secured convertible loan notes.
The notes are convertible at a price of 30p per share and redeemable in September 2018.
Chaarat is moving in to the first phase of development of its eponymous mine in the Kyrgyz Republic and this additional funding will allow it drill 12,000 metres to increase the reserve base of the Tulkubash heap leach project; construct a new section of the access road; start the basic and detailed engineering design and recruit construction and operating teams.
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The amount of the notes available to directors was limited to 5%.
Labro, the vehicle of chairman Martin Anderson, will subscribe for US$375,000 of the notes, It already owns 34.1% of the shares.
Martin Wiwen-Nilsson, who is grouped with Labro as a concert party, has also applied for US$375,000 worth of notes.
Chaarat shares were trading at 20p.