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Chaarat Gold Holdings Ltd on Tuesday said it raised £1.8 million via a placing of new shares and a part conversion of its working capital facility with its largest shareholder. The gold miner, which has an operating mine in Armenia and assets in Kyrgyzstan, said it issued 21.1 million new shares at a price of 5.25 pence each, raising £1.1 million. Shares in Chaarat Gold were down 17% to 6.00p each in London on Tuesday late morning. It also agreed to convert £700,000 of its existing $5 million facility with Labro Investments Ltd, of which $2 million is drawn, into 13.3 million new shares at the issue price. The proceeds from the fundraise will enable the company to fund the necessary costs for completing the financing of the Tulkubash gold project in Kyrgyzstan and provide general working capital in the interim period. Chaarat Gold expects to complete the Tulkubash financing by the end of the first quarter of 2024. It also said it expects the increased exposure that the placing creates to a ‘wider investment community’ will increase the liquidity of its shares trading on AIM. This, in turn, it expects to support the company in the longer term. ‘Chaarat is at a pivotal stage in its evolution, as we approach a final investment decision in the coming months of the Tulkubash project. We believe a low capex, as previously reported, of $104 million and a relatively short 18-month time horizon to first production is a compelling opportunity for investors,’ said Chief Financial Officer David Mackenzie. ‘Tulkubash represents the first dimension of our production story, which could provide significant cash flow from a 95,000 ounces per annum gold operation from 2025 onwards. Tulkubash provides a solid foundation for growth as we expand our production profile from both Tulkubash to the larger Kyzyltash development opportunity, which has unconstrained resources of around 5,377,000 ounces of gold. ‘This interim raising mobilises us on our path to securing funding for construction at Tulkubash, ensuring full construction readiness for [the first half of] 2024, following the appointment of key [engineering, procurement and construction] contractors in November 2023.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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