REG - Chaarat Gold Hlgs Ld - Update on Potential Investment

Chaarat Gold HoldingsAnnouncement

10/07/2023 12:00

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RNS Number : 5179F  Chaarat Gold Holdings Ltd  10 July 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

 

10 July 2023

 

Chaarat Gold Holdings Limited

 

("Chaarat" or the "Company")

 

Update on Potential Investment

 

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 that progress continues to be made towards
completion of the potential equity investment of US$250 million (the
"Investment") from Xiwang International Company Limited ("Xiwang").

 

As announced on 1 June 2023, Chaarat and Xiwang entered into a conditional
preliminary investment agreement (the "PIA") and a strategic co-operation
agreement in relation to the potential Investment which it is proposed 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 approximately 60% of the shares in
Chaarat(#).

 

Completion of the potential Investment is contingent upon meeting several
conditions by the end of July 2023. These conditions include corporate and
regulatory approvals which, given minimum required notice periods, are now
unlikely to be obtained in full by the original target date of 30 July 2023.
 The Company and Xiwang are discussing a new target date for satisfaction of
these conditions and consequential completion.  30 July 2023 continues to be
the target date for satisfaction of all other conditions.

 

The PIA and strategic cooperation agreement are still both conditional.
There is no guarantee at this stage that the proposed Investment will be
completed.  Further announcements will be made as appropriate.

 

 

Note

(#) The exact number of shares to be issued will be determined by reference to
the US£-GB£ exchange rate on the date of completion.

 

 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.

 

 

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