REG - Chaarat Gold Hlgs Ld - Conditional Preliminary Investment Agreement

Chaarat Gold HoldingsAnnouncement

01/06/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230601:nRSA2582Ba&default-theme=true

RNS Number : 2582B  Chaarat Gold Holdings Ltd  01 June 2023

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 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

 

FOR IMMEDIATE RELEASE

 

1 June 2023

 

Chaarat Gold Holdings Limited

 

("Chaarat" or the "Company")

 

Conditional Preliminary Investment Agreement for US$250 million

 

Chaarat Gold (AIM: CGH), a AIM-quoted gold mining Company with an operating
mine in Armenia, and assets at various stages of development in the Kyrgyz
Republic, is pleased to announce the signing of a conditional preliminary
investment agreement ("PIA") and a strategic co-operation agreement with
Xiwang International Company Limited ("Xiwang") in respect of a potential
equity investment of US$250 million (the "Investment").

 

As previously disclosed, the purpose of this potential Investment would be to
support the development of Chaarat's organic pipeline and facilitate external
growth through value-added acquisitions. Subject to meeting certain conditions
precedent, it is proposed that the Investment will be in the form of a new
issue of shares in Chaarat at a price of £0.20 per share, resulting in Xiwang
holding 60% of the shares in Chaarat.

 

Completion of the potential Investment is contingent upon meeting several
conditions. These conditions include the passing of shareholder resolutions at
a general meeting of Chaarat shareholders to implement the Investment, entry
into a shareholder relationship agreement, Xiwang completing its financing to
effect the Investment, both parties completing due diligence, and obtaining
all required corporate and regulatory approvals. If all conditions are met,
the parties are targeting completion by 30 July 2023.

 

It should be noted that the PIA and strategic cooperation agreement are both
conditional and there is no guarantee at this stage that the proposed
Investment will be completed. Further announcements will be made as
appropriate.

 

Martin Andersson, Executive Chair of Chaarat, said:

 

"We have now progressed beyond the letter of intent stage to conditional
agreements within the agreed timeline. We look forward to working with our
prospective partners to achieve completion of the Investment by our target of
the end of July 2023."

 

Kenny Song, Chair of Xiwang, said:

 

"We are pleased to have progressed our discussions with Chaarat to this point.
As we enter the final stage of our due diligence process, we are planning a
site visit to Chaarat's Kyrgyz assets in June.  We are confident that we can
support Chaarat's strategy to create a high-quality portfolio of mining assets
on a global basis."

 

 Enquiries

 Chaarat Gold Holdings Limited                       +44 (0)20 7499 2612
 Mike Fraser (Chief Executive Officer)               ir@chaarat.com (mailto:ir@chaarat.com)

 Canaccord Genuity Limited (NOMAD and Joint Broker)  +44 (0)20 7523 8000
 Henry Fitzgerald-O'Connor
 James Asensio

 finnCap Limited (Joint Broker)                      +44 (0)20 7220 0500
 Christopher Raggett

 Panmure Gordon (UK) Limited (Joint Broker)          +44 (0)20 7886 2500
 John Prior

 Hugh Rich

 

 

About Chaarat

 

Chaarat is a gold mining company which owns the Kapan operating mine in
Armenia as well as 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. Further information is available at www.chaarat.com
(http://www.chaarat.com) .

 

About Xiwang

 

Xiwang International Company Ltd (Xiwang) is an investment company
incorporated in the British Virgin Islands. As part of its long-term strategic
investment plan, Xiwang is looking to create a significant portfolio of mining
assets and resources on a global basis by partnering with and providing
funding to listed public operating companies with strong governance, focussed
on disciplined capital allocation and shareholder value creation.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRFFFILEDILVIV