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.
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.