Chaarat Gold Holdings Ltd (LON:CGH) has closed its US$13.8mln fundraising following the issue of 42mln shares at 26p per share.
Following admission, Chaarat chairman Martin Andersson will hold just under 40% of the shares, via a major stake held through his investment vehicle Labro, and a smaller personal holding
In view of the level of interest in the placing beyond the announced US$12mln, Labro's participation level was reduced from US$10mln to US$8.3mln, and comprised a US$2 million cash subscription and a conversion to equity of US$6.3mln of indebtedness under the Labro facility, reducing the outstanding principal amount and interest accrued under the Labro facility to zero. US$6.5mln of the Labro facility remains available for drawdown until December 31, 2020.
"We are delighted to see continued support from our keys shareholders as well as welcome new investors into the exciting Chaarat story,” the group's chief executive Artem Volynets said in a statement.
“Raising US$13.8mln, beyond the previously announced US$12mln, in the current challenging market environment shows the attractiveness of Chaarat's value proposition. The prime motivation behind this placing was to strengthen the balance sheet and allow the company to continue its strategy amidst the current macro-economic factors.
"We believe that continuous stability of the Kapan operation in Armenia, along with progress on the Tulkubash construction programme in the Kyrgyz Republic, and the deleveraging of the business allows us to progress with our strategic plans and take advantage of the opportunities presented," he added.