REG - Chaarat Gold Hlgs Ld - Board / Management Changes & Corporate Update

Chaarat Gold HoldingsAnnouncement

02/07/2024 07:15

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RNS Number : 6988U  Chaarat Gold Holdings Ltd  02 July 2024

2 July 2024

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Board / Management Changes & Corporate Update

 

Chaarat Gold (AIM: CGH), the AIM-quoted gold mining company, with development
projects in the Kyrgyz Republic, announces the following changes to the
Company's Board and executive management structure, and an update on its
funding position.

 

Martin Andersson has agreed to step down from his role as Executive Chairman
with immediate effect, at the Board's request, to avoid actual or potential
conflicts of interests in view of the restructuring discussions referred to
below given his interests in Labro Investments Limited ("Labro").  In
addition to being a provider of working capital to the Company, Labro is also
a substantial shareholder and holder of a portion of the convertible loan
notes referred to below.  Martin Andersson will continue to hold a seat on
the board as a Non-Executive Director, pursuant to Labro's right of
representation.

 

Gordon Wylie, previously Senior Independent Non-Executive Director, has been
appointed as the Independent Non-Executive Chairman of the Board of Directors.

 

David Mackenzie has been appointed as Acting Chief Executive Officer
(initially a non-Board position).  David joined the Company in January 2021
and is currently the Chief Financial Officer of the Company, a role which is
supported by an internal finance team.

 

The Board of Directors of the Company thanks Martin Andersson for his
contribution as Executive Chairman.

 

Corporate Update

 

As Shareholders are aware, as at 31 March 2024, the Company had a balance of
US$37.2 million in convertible loan notes due by 31 July 2024 (current balance
of c. US$38.9 million) and a balance of US$1.2 million due by 30 September
2024 pursuant to the Labro working capital facility (current balance of US$2.3
million), with no further drawdowns on such facility currently available. The
Company's current cash balance is c. US$0.6 million, and absent any repayment
of these facilities, is sufficient for the Company's ongoing requirements for
the next 4-6 weeks.  Discussions with Xiwang International Company Limited,
since the Company's 17 May 2024 announcement, have made limited further
progress to date and are not expected to progress sufficiently for the 31 July
2024 repayment date of the convertible loan notes.

 

The Company has been in negotiations with representatives of the convertible
loan note holders over recent weeks on a potential restructuring of the
outstanding convertible loan notes and the provision of additional working
capital, which depending on the terms may require agreement from shareholders
and certain creditors (including Labro). Discussions are not concluded as yet,
and there is no guarantee a positive conclusion will be reached in which case
the Board will need to consider its limited remaining alternatives, being
mindful of its fiduciary duties to protect creditors. The Board remains
hopeful a solution will be found and expects to provide a further update in
this regard over the coming week or so.

 

 

 

 

 For further information visit www.chaarat.com (http://www.chaarat.com/)  or
 please contact:

 Chaarat Gold Holdings Limited                        +44 (0)20 7499 2612
 David Mackenzie (Acting Chief Executive Officer)     IR@chaarat.com (mailto:IR@chaarat.com)

 Strand Hanson Limited (Nominated Adviser)            +44 (0)20 7409 3494
 Ritchie Balmer / James Spinney / Robert Collins

 Axis Capital Markets Limited (Joint Broker)          +44 (0)20 3026 0449
 Ben Tadd / Lewis Jones

 Panmure Gordon (UK) Limited (Joint Broker)           +44 (0)20 7886 2500
 Hugh Rich

 St Brides Partners Limited (Financial PR)            +44 (0) 20 7236 1177

 Susie Geliher / Charlotte Page

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR").

About Chaarat

Chaarat is an exploration and development company which owns the Tulkubash and
Kyzyltash Gold Projects in the Kyrgyz Republic. The Company has a clear
strategy to build a leading emerging markets gold company through organic
growth and selective M&A.

 

Chaarat aims to create value for its shareholders, employees and communities
from its high-quality gold and mineral deposits by building relationships
based on trust and operating to the best environmental, social and employment
standards.

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