Charaat Gold Holdings Ltd (LON:CGH) has proposed a US$11mln capital raising to meet its near-term funding plans.
The company plans to raise the funds through the issue of convertible bonds and the placement of ordinary shares.
READ: Chaarat Gold brings in cash and partner for Kyrgyz Republic projects
Charaat has secured a commitment for a US$10mln subscription for convertible bonds by a new investor and has received “firm indications of interest” from the board and senior management participating in the US$1mln share placing.
The issue price of 30p for the placing represents a premium of about 4% to the closing price of 28.80p per shares on Friday.
The group said the funding will address Chaarat's near-term funding plans but it will consider additional subscriptions of up to US$5mln from current and existing shareholders in order to “facilitate the introduction of longer-term investing partners”.
The funds will support Chaarat's projects, including the Tulkubash operation in Kyrgyzstan and recently acquired the Kapan mine in Armenia, which transformed the company from developer to producer.
“This new fundraise represents a clear expression of confidence in Chaarat's growth trajectory from both internal and external investors. I am delighted that investors recognise the fundamental value of Chaarat, subscribing for equity and bonds at respective premiums to the last share price,” said CEO Artem Volynets.