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Chaarat Gold resumes trade on AIM as it secures “improved terms” for Kapan acquisition

The firm said Polymetal International, the owner of Kapan, had agreed to accept US$10mln of the US$55mln total consideration for Kapan in convertible notes of the Company, rather than US$5mln

Gold and money
Kapan will take Chaarat’s gold equivalent production to 65,000 ounces a year once the acquisition completes

Chaarat Gold Holdings Ltd (LON:CGH) saw the suspension on trading in its shares on AIM lifted at 11.30am om Friday after the firm secured “further improved terms” for its acquisition of the Kapan Mining and Processing Company.

The AIM-listed exploration firm said Polymetal International PLC (LON:POLY), the owner of Kapan, had agreed to accept US$10mln of the US$55mln total consideration for Kapan in convertible notes of the Company, rather than US$5mln as previously announced.

READ: Chaarat Gold secures US$1mln in funding from two investors

Chaarat said the change was conditional upon the acquisition closing no later than 15 January 2019.

The group also announced a number of board changes;

• Hussein Barma as independent non-executive director
• Gordon Wylie as deputy chairman and senior independent director
• Dorian Nicol stepped down as technical director and head of exploration on 12 December to become senior vice president of exploration
• Richard Rae resigned as non-executive director
• Sergei Zhukov to join as head of legal and company secretary

The Kapan mine is in Armenia and will take Chaarat’s gold equivalent production to 65,000 ounces a year once the acquisition completes.

In afternoon trading, Chaarat shares were 7.2% lower at 21.90p.

 -- Adds share price --

Quick facts: Chaarat Gold Holdings Ltd

Price: 38.25 GBX

AIM:CGH
Market: AIM
Market Cap: £200.65 m
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Chaarat Gold reports 'steady and stable' production at Kapan mine in Armenia

Chaarat Gold Holdings Ltd's (LON:CCG) Artem Volynets updates Proactive London's Andrew Scott on first quarter production and developments at the company. Production at the Kapan mine in Armenia came in at 12,992 gold equivalent ounces in the first quarter. That marks a 12% improvement...

on 21/5/20

2 min read