Chaarat Gold Holdings Limited (LON:CGH) has entered into an agreement to refinance the outstanding US$7mln of an investor loan originally made in November 2018.
The refinancing includes US$0.2mln of accrued interest with the terms a reduction in the coupon to 9.5% and an extension of the maturity date until 31 December 2024.
Labro, the lender, will also not take a pledge over shares in Chaarat Gold International Limited, which owns the Kapan mine operating subsidiary.
As consideration for refinancing the Outstanding Investor Loan, the principal amount of a separate Labro Term Loan will increase by US$1mln to US$22mln.
Labro has also extended the date for repayment of a US$0.8mln Working Capital Facility until 30 June 2021.
Artem Volynets, Chaarat’s chief executive, said: "We appreciate the continued strong support from our largest shareholder, Labro.
"The refinancing on more favourable terms and the four-year extension of the maturity of the balance of the Investor Loan affords the Company greater flexibility in terms of the timing of repayment of this financing.”
Labro is a substantial shareholder of Chaarat and majority-owned by Martin Andersson, the miner’s executive chairman.