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Chaarat Gold Holdings to Raise $15M to Fiance Tulkubash Heap Leach Project

3 Apr 2017 9:19 am

LONDON--Chaarat Gold Holdings Ltd. (CGH.LN) said Monday it plans to raise $15 million via the issue of short term senior secured convertible loan notes, which will be used towards the Tulkubash heap leach project.

The AIM-quoted exploration and development company, with assets in the Kyrgyz Republic, said the drilling campaign will begin in May with the updated resource available by the end of this year. It is therefore anticipated that the bankable feasibility study can be updated to include the revised reserve by the end of the first quarter of 2018, it said.

The company also reiterates its intention to achieve the first gold pour from the Tulkubash heap leach project in 2019.

In addition to the loan note issue, the company and its advisors are engaged in talks with certain international finance institutions to finance some aspects of the project such as the road, the power-generating unit and possibly the transport equipment, which constitutes the majority of the mine fleet. A site visit is to be arranged to progress these discussions in May, it said.

The senior secured convertible loan notes will have an 18 month term maximum, with a minimum investment of $250,000

Shares at 0915 GMT down 0.5 pence, or 2.6%, at 19 pence.

-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

April 03, 2017 05:19 ET (09:19 GMT)

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