REG - Chaarat Gold Hlgs Ld - Tulkubash contracts signed

Chaarat Gold HoldingsAnnouncement

01/11/2023 07:15

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RNS Number : 9510R  Chaarat Gold Holdings Ltd  01 November 2023

1 November 2023

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Tulkubash contracts signed

 

Chaarat Gold (AIM: CGH), the AIM-quoted gold mining Company with development
projects in the Kyrgyz Republic, is pleased to announce that its wholly-owned
subsidiary, Chaarat Zaav CJSC, has entered into binding conditional agreements
for the construction and operation of its wholly owned Tulkubash Gold Project
("Tulkubash") in the Kyrgyz Republic. Tulkubash contains resources of 1,011
Koz (M&I and Inferred) and Kyzyltash, which is on the same license, has
unconstrained resource of 5,377Koz(1) (M&I and Inferred).

 

The following conditional contracts have been signed with Power Construction
Corporation of China Limited, the Kyrgyz subsidiary of Power Construction
Corporation of China International Group Limited ("Power China") for the
Tulkubash Gold Project:

 

•     US $82.8 million engineering, procurement, and construction
("EPC") ceiling price contract;

•     US $160.1 million for a five-year mining contract; and

•     US $7.2 million for a five-year operation and maintenance
contract.

 

The revised capital development costs are now expected to be US $104.2
million, US $11.2 million lower than originally stated in the Company's
Bankable Feasibility Study(2) which was finalised in May 2021 ("BFS"). The
revised capital development cost of US $104.2 million includes the US $82.8
million EPC cost with Power China (which includes $15.2 million in mine
development costs), US $16.4 million of owners costs (project management,
spares & first fills and pre-production fuel) and US $5.0 million
contingency (5% of the total cost of the development, in recognition of the
not to exceed ceiling pricing mechanism in the EPC contract).

 

The Power China agreements are a critical step in the pathway for Chaarat to
secure funding, for its Tulkubash Project. All agreements are subject to
securing full project funding for Tulkubash and the Company continues to
advance discussions with potential investors, including, as previously
announced, Xiwang International.

 

David Mackenzie, Chief Financial Officer of Chaarat, said:

"Chaarat appreciates the pace at which Power China has worked to conclude
commercial discussions, for what is another important milestone for the
Tulkubash Project. This is a key contract that fixes the majority of the
project cost and materially de-risks the delivery of the Project. Having Power
China for both construction and operational phases is a full-service solution
ensuring the project will proceed efficiently from construction phase through
commissioning to operations. With these conditional contracts now in place,
Chaarat will be able to move expediently to construction of its Tulkubash
project as soon as the project funding has been secured. Given the reduction
in capital development costs we will update the market shortly with revised
management estimates on the project economics."

 

Power China

As one of the world's largest construction enterprises, Power China conducts
business in more than 130 countries around the world and has delivered a
series of industry-leading and high-quality projects over the years. In 2023,
Power China ranked 105th among the Fortune Global 500 Companies, and 32nd
among the Top 500 Enterprises in China. Power China is a publicly listed
entity, with a majority owned by the Chinese State.  Further information can
be found at: https://en.powerchina.cn/ (https://en.powerchina.cn/)

 

(1) Per the 2022 annual report, which also includes details of JORC compliant
ore reserves at Tulkubash, and can be found on Chaarat's website.

(2)  Bankable Feasibility Study report produced by LogiProc (Pty) Ltd and
released by Chaarat in May 2021 can be found on Chaarat's website.

( )

 

 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

 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
 John Prior

 Hugh Rich

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

 

 

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. Further information is available at www.chaarat.com
(http://www.chaarat.com) (http://www.chaarat.com/) (http://www.chaarat.com) .

 

 

ENDS

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