Chaarat Gold Holdings Ltd (LON:CGH) has raised US$2.71mln through a share placing – more than the gold miner had planned to raise.
Among those taking part in the fundraise were members of senior management as well as a “leading global institutional investor”. A number of other new and existing investors also subscribed for shares.
In total, Chaarat has issued just shy of 7mln shares at 30p apiece – a small premium to the market price on 29 March, the day before the placing was first announced.
WATCH: Chaarat Gold - Mining Capital Conference May 2019
The money raised from the placing (US$2.71mln) is on top of the US$10mln of convertible bonds which Chaarat secured at the beginning of April.
Chaarat had previously said it will use the cash injection to support its projects, including the Tulkubash operation in Kyrgyzstan and recently acquired the Kapan mine in Armenia, which transformed the company from developer to producer.
Following Wednesday’s subscriptions, the placing has been closed immediately.
“We are delighted to welcome these new investors to the company, and are particularly pleased to see the interest from one of the leading global institutional investors,” said chief executive Artem Volynets.
“Its support is a clear expression of confidence in Chaarat's management and growth strategy.”
Volynets added: “Sound and diversified funding, combined with a focus on assets and resource growth, is central to that strategy. We will continue to efficiently fund the business on accretive terms, whilst maintaining our commitment to minimize shareholder dilution.”
Chaarat shares were down 2.2% down to 26.4p on Wednesday afternoon.