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Chaarat Gold receives US$9.5mln as it upsizes loan

The miner also said it had received “positive interest” in regard to the financing of its Tulkubash gold project in the Kyrgyz Republic

Chaarat Gold Holdings Ltd - Chaarat Gold receives US$9.5mln as it upsizes loan

Chaarat Gold Holdings Limited (LON:CGH) has received US$9.5mln in cash as part of a loan upsizing, while also updating on the financing of its Tulkubash gold project in the Kyrgyz Republic.

The AIM-listed miner said it has agreed a new maturity date of 31 March 2020 for a US$10mln loan agreement originally agreed in November 2018, while also increasing the loan amount to US$17mln.

WATCH: Grades at Tulkubash impressive for Chaarat Gold

All the terms of the loan had remained unchanged, including the interest charge of 13% per annum, while one of Chaarat’s substantial shareholders, Labro Investments, had provided a guarantee to the lender for the full loan amount in exchange for a 2% fee on the US$17mln from Chaarat.

The company said it had also drawn down a further US$2.5mln from Labro under an existing working capital facility, as well as closing a previously announced convertible loan notes offering after having issued US$19.68mln of 2021 notes over the course of the year.

Meanwhile, Chaarat said it had received “positive interest” in the financing of its Tulkubash project and was working to finalise a funding deal by the end of 2019 or early 2020.

Artem Volynets, Chaarat’s chief executive, said the US$9.5mln in additional cash would allow “additional headroom” for the company as it continued to focus on funding Tulkubash.

In early trading on Wednesday, Chaarat’s shares were steady at 27.7p.

Quick facts: Chaarat Gold Holdings Ltd

Price: 33.1 GBX

AIM:CGH
Market: AIM
Market Cap: £150.85 m
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