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

Chaarat Gold HoldingsAnnouncement

11/08/2023 07:00

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RNS Number : 0059J  Chaarat Gold Holdings Ltd  11 August 2023

11 August 2023

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, announces the extension of the maturity of its secured convertible
loan notes 2023 (the "Loan Notes") from 31 July 2023 to 31 October 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 as at 31 July
2023 and the fee for the extension granted in October 2022 being capitalised
as at 31 July 2023 and, with effect from 1 August 2023 being subject to
interest at the rate of 20%.  Therefore, with effect from 1 August 2023, the
principal amount of the Loan Notes became US$31.7 million which will incur
interest at the new rate of 20%.  Additionally, a one-off fee of US$1.0
million (being 5% of the original 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 together with the Extension Fee
will be due on the extended final repayment date of 31 October 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.

 

In addition, the Company has agreed that a representative of the holders of
the Loan Notes may join the board of Chaarat until such time as the Loan Notes
together with accrued interest and the Extension Fee have been repaid in
full.  A further announcement will be made once pre-appointment formalities
have been completed and the appointment is made.

 

As of 31 October 2023, if not repaid early, the total outstanding balance of
the Loan Notes will be US$34.3 million. This consist of; principal amount
outstanding of the Loan Notes as at 31 October 2023 of US$31.7 million plus
accrued interest of US$1.6 million and extension fee of US$1.0 million.

 

If all the Loan Notes convert assuming full conversion of principal, the
Extension Fee and interest to the extended maturity date of 31 October 2023,
83,807,564 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$1.6 million of Loan
Notes including accrued interest and extension fees as at 31 July 2023 (the
"Labro Notes"). If all the Labro Notes convert assuming full conversion of
principal and interest to the extended maturity date of 31 October 2023, then
4,271,267 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 loan noteholders.
The maturity extension allows the Company to focus on identifying broader
financing solutions to support the corporate and asset development needs of
the group."

 

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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