REG - Chaarat Gold Hlgs Ld - Extension of Convertible Loan Notes

Chaarat Gold HoldingsAnnouncement

06/10/2022 07:00

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RNS Number : 9493B  Chaarat Gold Holdings Ltd  06 October 2022

6 October 2022

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Extension of Convertible Loan Notes

 

Chaarat Gold (AIM: CGH), the 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 extension of the maturity of its secured
convertible loan notes 2022 (the "Loan Notes") from 31 October 2022 to 31 July
2023 (the "Extension Agreement").

 

The Extension Agreement, which required the consent of the holders of a
majority in value of the Loan Notes, has been approved on the same terms as
those currently applicable to the Loan Notes but with interest being
capitalised as at 31 October 2022.  Therefore, with effect from 1 November
2022, the principal amount of the Loan Notes will be US$28.7 million which
will incur interest at the current rate of 12%.  Additionally, a one-off fee
equal to 1% of the principal amount of the Loan Notes will be payable to Loan
Note holders as remuneration for the Extension Agreement (the "Extension
Fee").  A single interest payment will be due on the extended final repayment
date of 31 July 2023 provided that no conversion or early repayment has
occurred.  The Loan Notes can be repaid early in cash at the Company's option
upon 10 business days' notice.

 

As of 31 October 2022, the outstanding balance of the Loan Notes would have
been the principal amount of US$19.7 million plus accrued interest of US$9.0
million.  If not repaid early, the principal amount outstanding of the Loan
Notes as at 31 July 2023 will be US$28.7 million plus accrued interest of
US$2.6 million and Extension Fee of US$0.2 million.

 

If all the Loan Notes convert assuming full conversion of principal, the
Extension Fee and interest to the extended maturity date of 31 July 2023,
77,005,827 ordinary shares of US$0.01 each ("Ordinary Shares") will fall due
to be issued to Loan Note holders.

 

As previously stated Labro Investments Limited ("Labro"), a substantial
shareholder in the Company the majority of shares in which Martin Andersson
(the executive chair of Chaarat) is interested, holds US$1.0 million of Loan
Notes excluding accrued interest (the "Labro Notes"). If all the Labro Notes
convert assuming full conversion of principal and interest to the extended
maturity date of 31 July 2023, then 3,924,775 Ordinary Shares will fall due to
be issued to Labro.

 

 

Mike Fraser, Chief Executive Officer of Chaarat, said:

 

"Chaarat is appreciative  of the continued support from its noteholders. The
maturity extension allows the Company to focus on moving forward with its
growth plans."

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).

 

 Enquiries

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

 

 

ENDS

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