Gold mines developer Chaarat Gold Holdings Limited (LON:CGH) has raised US$5.8mln through the issue of 12.9mln shares at 35p a pop.
Shares closed at 34.2p last night.
Labro Investments Limited, the provider of a working capital facility to Chaarat, took 2.88mln of the shares and consequently reduced the amount owed to it by Chaarat by US$1.3mln to around US$3.5mln.
Also, 175,000 shares have been issued to satisfy the company's obligations under a warrant agreement; the warrants were exercised for cash at an aggregate share price of 15p each.
"We are delighted to see continued support from our existing shareholder base as well as welcome new investors into the exciting Chaarat story,” said Artem Volynets, the chief executive officer of Chaarat.
“The prime motivation behind this placing was to strengthen the institutional investor base of the company by providing the opportunity for institutional investors to purchase blocks of shares and the funds will support our various growth initiatives and strengthen our balance sheet,” he added.
"We believe that the ongoing execution of our strategy, the successful operational improvements of the Kapan mine in Armenia, along with progress on the Tulkubash construction programme in the Kyrgyz Republic, will make Chaarat a stronger investment prospect for investors looking to access growth gold mining opportunities in the FSU region," Volynets said.