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

Chaarat Gold HoldingsAnnouncement

27/10/2023 07:15

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RNS Number : 4695R  Chaarat Gold Holdings Ltd  27 October 2023

27 October 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 development
projects in the Kyrgyz Republic, announces an extension of the maturity of
its secured convertible loan notes  (the "Loan Notes") from 31 October 2023
to 31 July 2024 (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, and as announced on 11 August,
with interest payable going forward on the capitalised amount as at 31 October
2023 of US$34.3 million.  Payment of the principal and accrued interest will
be due on the earlier of the extended final repayment date of 31 July 2024,
or the Final Investment Decision to proceed on the Tulkubash project by the
Board of Directors of the Company, 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 to the Extension Agreement, the Company has agreed with Labro
Investments Limited ("Labro"), an extension to the term of the previously
announced working capital facility with Labro from 31 July 2024 to 30
September 2024. All other terms disclosed in the announcement of 12 October
2023 remain the same.

 

David Mackenzie, Chief Financial Officer of Chaarat, said:

 

"Chaarat is appreciative of the continued support from its loan noteholders.
The maturity extension, combined with the recently announced working capital
facility from the largest shareholder, enables Chaarat to focus on achieving
the Tulkubash Final Investment Decision in an expedient manner and
subsequently implement broader financing to support further corporate and
asset developments of the group."

 

Notes:

1. If all the Loan Notes convert assuming full conversion of principal and
interest to the extended maturity date of 31 July 2024, 96,564,938 ordinary
shares of US$0.01 each ("Ordinary Shares") will fall due to be issued to
Loan Note holders.

 2. As previously stated Labro, a substantial shareholder in the Company the
majority of shares in which Martin Andersson (the executive chair of
Chaarat) is interested, holds US$1.7 million of Loan Notes including accrued
interest as at 31 October 2023 (the "Labro Notes"). If all the Labro Notes
convert assuming full conversion of principal, interest, and fees to the
extended maturity date of 31 July 2024, then 4,921,448 Ordinary Shares will
fall due to be issued to Labro.

 

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
 Martin Andersson (Executive Chair)                   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

 Cavendish Capital Markets Limited (Joint Broker)     +44 (0)20 7220 0500
 Neil McDonald

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

 Hugh Rich

 Stifel Nicolaus Europe Limited (Financial Advisor)   +44 (0)20 7710 7600
 Jan-Erik Back

 

About Chaarat

Chaarat is a gold mining 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. Further information is available at www.chaarat.com/
(http://www.chaarat.com/) .

 

 

ENDS

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