logo-loader

Chaarat reassesses borrowing needs, cuts convertible debt placement to US$50mln

Published: 07:53 16 Oct 2018 BST

1539673012_shutterstock_249210421-(1)
The financing will support large-scale gold production

Chaarat Gold Holdings Ltd (LON:CGH) has reassessed its borrowing needs and is reducing its current convertible debt placement from US$100mln to US$50mln.

The reduction has been prompted by positive developments surrounding the company's proposed acquisition of a polymetallic asset, as well as accelerated project funding arrangements for the development of the Tulkubash mine, following the recent positive resource upgrade.

WATCH: Chaarat Gold reports 'significant increase' to resource and grade at Tulkubash

Significant progress has been made to bring forward a separate, potential US$100mln project debt financing package for Tulkubash, which is expected to reduce the upfront equity requirement to bring the mine into commercial production.

Chaarat has already completed the first phase of its fundraising, receiving commitments for approximately US$17.6mln from new and existing investors.

The company is now targeting commitments for up to US$50mln in total and plans to raise the remaining US$32.4mln to complete the fundraising as soon as practicable.

Chaarat is in the process of completing due diligence and finalising definitive terms on its potential acquisition and plans to sign the sale and purchase agreement as soon as practicable.

 

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