TIDMCGH
Chaarat Gold Holdings Ltd
("Chaarat" or "the Company")
PRELIMINARY ANNOUNCEMENT OF AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31
DECEMBER 2009
Road Town, Tortola, British Virgin Islands (20 May 2010)
Chaarat Gold Holdings Limited has today published its preliminary results for
the year ended 31 December 2009.
Highlights
* Significant progress on the Prefeasibility Study (PFS) during 2009 - on
track for completion in Q3 2010
* PFS findings indicate the potential of implementing an initial high grade,
low-cost, open pit mine within the Tulkubash T0700 Project Area
* Optimal processing solution for ore identified
* 5,357 metres in 25 drill holes and 206 metres of adits completed during 2009
* JORC compliant mineral resource of 4.009 million ounces of gold at a grade
of 4.14g/t delineated subsequent to year end
* The mineral resource of the contiguous C5300 and C4600 Project Areas in the
Contact Zone totals 1.71 million ounces at a grade of 4.19 g/t Au
* The mineral resource of the contiguous M2400 and M3000 projects in the Main
Zone totals 1.23 million ounces at a grade of 4.18 g/t Au
* The mineral resource of the T0700 project area contains 336,000 ounces at a
grade of 4.18 g/t Au
* 55% of resource now within the indicated category (2008: 49%)
Chairman's report
It has been another exciting year for your company. Much has been achieved;
drilling has increased our JORC resource to over four million ounces of gold,
work on the prefeasibility study continues apace and in September we welcomed a
new shareholder to our register in the form of China Nonferrous Metals
International Mining Co. Ltd (CNMIM), a member of the China Nonferrous Metals
Mining Co. Ltd (CNMC) group. Together with a strong gold price, these factors
have contributed to an increasingly positive sentiment surrounding Chaarat.
Having seen our shares trade at depressed levels in late 2008, early in 2009
management visited Australia and Hong Kong with a view to identifying potential
interest in Chaarat as well as to investigate the possibility of a complementary
or alternative quotation for our stock. The Directors believe that Asian markets
may have a better understanding of Asian regional risk. Mountainous Central Asia
is where, to use industry parlance, "elephants" are to be discovered. Quoting
Nick Holland, the CEO of Goldfields: "Kyrgyzstan is the next mining frontier."
This view seems to be shared by many Asian investors.
In May 2009 we completed a private placing of 18.6 million shares at 12p per
share, largely with existing shareholders, for a consideration of GBP2.2 million.
Shortly thereafter, in September, a further placing followed at a price of 25p
per share. This placing introduced to Chaarat a major Chinese state owned
enterprise, CNMC. CNMC, through its subsidiary CNMIM, subscribed for new shares
which equated to 19.9% of the company and showed its support and belief in
Chaarat by buying shares at a premium to the market price and placing two high
ranking officers as directors on our board.
We are therefore pleased to welcome as directors Mr Luo Tao, President of CNMC,
and Mr David Tang, President of CNMIM. The significant financial support of
CNMC and its experience and contacts in mineral and metals related industries
will be of considerable value to Chaarat.
You will see from the Chief Executive's report on operations that the outcome of
our drilling programme has once again confirmed our optimism about the
resource. There has been consistency in both grade and continuity of
mineralisation in the important Contact Zone which now hosts more than 1.7
million ounces. This project remains open at depth and along strike and we are
very hopeful that it will continue to grow.
Another encouraging aspect of last year's work has been the identification of
oxide mineralisation in the Tulkubash Zone. It is too early to make definitive
predictions, but if a sufficient tonnage of gold bearing oxides that are
amenable to a direct leaching process can be amassed, which we believe is
probable, we should be able to develop a modest sized open pit gold mine in less
than two years. Upon validation, the mining of the Tulkubash Zone would become
the subject of a separate study and we would move straight to the feasibility
stage on this project.
Progress on the prefeasibility study covering the mining of the Main and Contact
Zones has meanwhile moved on according to plan. Whilst we were hoping to
complete the study earlier, a decision was made last year to postpone the work
as new information changed some of our views about geo-technical aspects.
Given the physical location of our project in the Kyrgyz Republic which borders
China, and given the respect our Chinese shareholder CNMIM commands both in
mainland China and Hong Kong, the board is currently assessing the option of a
listing on the Hong Kong stock exchange. The principal reasons for seeking a
Hong Kong listing would be to enhance liquidity and to endeavour to have our
share price better reflect its true value.
The recent political upheaval in the Kyrgyz Republic has been unhelpful. Our
operations have been unaffected even though these events have given rise to
uncertainty. So far the interim governing body has been accepted by the
principal international powers giving grounds for hope in what has been a
turbulent period for the country. The interim government appears determined in
its efforts to achieve democratic elections within six months. We are hopeful
that this can be fulfilled.
The coming year will present us with new challenges relating to the development
of a four million ounce gold project. We will have to broaden our managerial
resource from the current very tight team as we move into the development stage.
We look forward to the completion of the prefeasibility study and moving to the
next stage which is a definitive feasibility study.
Christopher Palmer-Tomkinson
Chairman
Operations Report
During 2009, the company continued to move the Chaarat Project from exploration
to development. Considerable progress has been made on the prefeasibility study
which is on track for completion during the third quarter of 2010.
Much of management's time was dedicated to developing a more easterly focus for
the company. This takes account not only of the geographical position of our
deposit, but also the growing Chinese involvement in Central Asia. We are aware
that securing project finance from western financial institutions remains
difficult, and realising that most equipment nowadays comes from China, Chaarat
took a strategic decision to turn east. We are also of the belief that Asian
and Australian investors may be more comfortable with an investment in Central
Asia than European investors. Visits were made to Australia and Hong Kong and
it became clear to us that the presence of a credible Chinese investor will be
of significant strategic value.
The share register was strengthened in two stages; in April 2009 we raised GBP2.2
million, mostly from existing shareholders at a price of 12p. Three months later
the company announced that China Nonferrous Metals International Mining Co. Ltd
(a subsidiary of China Nonferrous Metals Mining Co. Ltd) had subscribed for
19.9% of the company at a price of 25p which was a significant premium to the
market price. This investment was a strong statement of support and belief in
Chaarat. Indeed our share price has been boosted by the combination of positive
exploration news, shareholders' support and an improved understanding of the
potential of our project.
Exploration
The exploration season, which only started after the cash injection from CNMIM,
was shorter than usual. However, the work done was very important and resulted
not only in a larger resource statement but also provided us with a better
insight and understanding of the deposit and the best way to develop it.
Main Zone
The Main Zone currently extends to over 4 km of strike and includes seven bodies
with a total stated resource of 1.87 million ounces at a grade of 4.15 g/t Au.
This resource, which is open in all directions, has mostly underground
potential. The ability to drill from surface is limited, so the company has
started to develop an adit to enable it to drill from underground and add
resource in those areas where it is most beneficial for the mine design.
Chaarat and its advisors are now working on the conceptual mine design which
will determine the best location for a production and access adit. The location
of the exploration adit has been selected to coincide with the location of the
production access adit so that the time to production is shortened and the money
spent on the adit is not wasted.
Although most of the resource is to be mined by underground methods a
considerable portion is amenable to open pit mining. The company's advisors
have generated a preliminary pit shell and it will now be easier to identify the
locations where surface drilling will not only increase resource in general, but
will also contribute to a low cost open pit resource.
Contact Zone - Growing and consolidating
The Contact Zone continues to deliver both predictable and encouraging results.
During the year two more drives, cutting through the zone, were completed from
the drift which runs along the mineralised body, bringing the total number of
cross cuts going through the zone to four. These cross cuts provide invaluable
information about the mineralised material and the host rock; which allows the
company to design the mining work with accuracy and confidence.
The adit was extended southwards and an additional drilling chamber - DC-5 - was
constructed to allow additional drilling and to increase the strike.
Significant drilling from DC-3 resulted in strike increases as predicted. We
believe that drilling from DC-5 will result in further strike extensions.
Towards the end of the season the northern-most cross cut was completed and
provided more comfort that the mineralised zone is consistent, wide and well
mineralised.
Tulkubash - An independent project?
The Tulkubash Zone, the least explored and least understood zone, provided us
with some major positive news this year. It appears that the mineralisation in
this zone is somewhat different from the other zones with very low levels of
silver, arsenic and antimony as well as sulphur. A number of metallurgical
tests have indicated that the mineralisation is free milling and thus does not
require oxidation to retrieve the gold. This is a significant development as
the need to oxidise ore adds considerably to the complexity and cost of gold
projects.
Even more exciting is the fact that most of the Tulkubash's current resource can
be mined by the open pit method which means production costs may be very low.
The company believes that drilling in the right places, which is what we intend
to do this season, may significantly increase the resource.
The company is currently assessing whether it should fast-track the project to
feasibility study. It is management's belief that there is potential for having
a modest production base from Tulkubash in a much shorter time frame than
originally envisaged.
Mineral resource
The mineral resource calculation was prepared again this year by SRK Consulting
(Johannesburg). The detailed resource table broken down by projects and
resource category is below.
At 2.0g/t Cut-off|Indicated Resources | Inferred Resources | Total Resources
=---------+--------+------+-----+-------+------+-----+-------+------+-----+-------
| | Mass |Gold | Gold | Mass |Grade|Content| Mass |Grade|Content
Zone |Sub-Zone| |Grade|Content| | | | | |
| +------+-----+-------+------+-----+-------+------+-----+-------
| | kt | g/t | Koz | kt | g/t | koz | kt | g/t | koz
=---------+--------+------+-----+-------+------+-----+-------+------+-----+-------
| M2400 |2,900 |4.11 | 390 | 800 |3.96 | 106 |3,700 |4.08 | 496
+--------+------+-----+-------+------+-----+-------+------+-----+-------
| M3000 |3,800 |4.11 | 504 |1,500 |4.57 | 226 |5,300 |4.24 | 730
+--------+------+-----+-------+------+-----+-------+------+-----+-------
| M3400 | | | |1,000 |4.17 | 134 |1,000 |4.17 | 134
+--------+------+-----+-------+------+-----+-------+------+-----+-------
Main Zone| M3900 |1,500 |3.76 | 182 | 700 |3.86 | 90 |2,200 |3.79 | 272
+--------+------+-----+-------+------+-----+-------+------+-----+-------
| M4400 | | | | 300 |3.86 | 41 | 300 |3.86 | 41
+--------+------+-----+-------+------+-----+-------+------+-----+-------
| M5000 | 100 |5.81 | 13 | 400 |5.20 | 59 | 500 |5.32 | 72
+--------+------+-----+-------+------+-----+-------+------+-----+-------
| M6000 | 300 |3.88 | 39 | 600 |4.33 | 90 | 900 |4.18 | 129
=---------+--------+------+-----+-------+------+-----+-------+------+-----+-------
Main Zone Totals |8,600 |4.05 | 1,127 |5,400 |4.28 | 744 |14,000|4.15 | 1,871
/Averages | | | | | | | | |
=---------+--------+------+-----+-------+------+-----+-------+------+-----+-------
| C4000 | 400 |3.33 | 39 | 500 |3.33 | 55 | 900 |3.33 | 94
Contact +--------+------+-----+-------+------+-----+-------+------+-----+-------
Zone | C4600 | 900 |3.97 | 116 |1,900 |4.16 | 247 |2,800 |4.10 | 363
+--------+------+-----+-------+------+-----+-------+------+-----+-------
| C5300 |6,700 |4.19 | 906 |3,200 |4.24 | 439 |9,900 |4.21 | 1,345
=---------+--------+------+-----+-------+------+-----+-------+------+-----+-------
Contact Zone |8,000 |4.12 | 1,061 |5,600 |4.13 | 741 |13,600|4.13 | 1,802
Totals /Averages | | | | | | | | |
=---------+--------+------+-----+-------+------+-----+-------+------+-----+-------
Tulkubash| T0700 | | | |2,500 |4.18 | 336 |2,500 |4.18 | 336
=---------+--------+------+-----+-------+------+-----+-------+------+-----+-------
Grand |16,600|4.09 | 2,188 |13,500|4.20 | 1,821 |30,100|4.14 | 4,009
Totals/Averages | | | | | | | | |
It is worth noting that not only was the resource significantly increased but
also the portion of the resource in the indicated category has increased from
49% to 55%.
The Tulkubash Zone, which is included in its entirety in the inferred category,
will benefit this coming year from increased drilling activity and we expect a
significant portion of it to be transferred to the indicated category in the
next resource update.
Prefeasibility study
Towards the end of 2009 it became apparent that the foot and hanging walls are
more competent as we move south along the Contact Zone. A decision was taken to
postpone the mine design as these findings could have led to a change in the
proposed mining method. Additional geotechnical work was conducted which
resulted in a decision to move ahead with the original mining method. This
extra work has led to a delay in the original timetable for the mine
development.
Work on the prefeasibility study is continuing and we expect to report on its
findings during the third quarter of 2010. The biggest challenge of this
project is the mining itself; to define the most effective, productive and low
cost mining method. Significant effort has been invested into meeting this
challenge and finding the right solution.
Process
Following a rigorous sequence of metallurgical trials it became clear that the
most suitable process for the sulphide segment of the Chaarat ore is pressure
oxidation (POX). This process is well established and widely used elsewhere;
hence we do not anticipate any technical complications.
SNC Lavalin, a world leader in process engineering, and RDI, a leading Denver
based metallurgical laboratory, have agreed that the optimal process involves
flotation of the ore and pressure oxidation of the float concentrate. Following
oxidation, the concentrate, together with the tailings from the flotation
circuit, will be sent to a carbon-in-leach (CIL) circuit for gold extraction.
The process will provide a significant reduction in both capital and operating
costs, as well as technical complexity, whilst still subjecting the whole ore to
CIL high gold recovery.
An added benefit of this process is a much reduced environmental impact due to
the fact that most, if not all, the arsenic is expected to be locked in
non-soluble, non-hazardous compounds following the high pressure oxidation
process.
SNC and RDI , have also made significant progress on the design of the plant.
Suitable sites for the tailings dams and process plant and facilities have been
identified. Preliminary work has been undertaken to determine the surface and
underground water regime and the geotechnical properties of the sites in order
to allow the design of the process and tailings storage facilities.
Infrastructure
An extensive analysis of the best options for road and power has been carried
out. We have always been of the view that it may be sensible to develop our own
hydro power station. However, we are investigating alternative solutions.
Work is progressing on the access road. There has been greater focus on the
accuracy of cost estimates which we are finding are themselves now lower than we
had thought. There do not seem to be any material impediments to securing
year-round and easy access to the operations. The total distance between the
railhead and the property is 190 kilometres.
Work with the community
Chaarat continued its work with the local community during 2009 by supporting
the communities in health education and skill building. The Board resolved early
in 2010 to establish a not-for-profit organisation which will independently be
responsible for such activities and which will be able to receive assistance and
funds not only from Chaarat, but also from other additional parties. As in
previous years the company continued to grant study scholarships to students.
As this report is published, deep into 2010, the work on site has already begun.
We aim to continue to deliver growth in resource, progress in the project
development and perhaps most importantly, develop the very dedicated team which
delivers these results.
Dekel Golan
Chief Executive Officer
Consolidated income statement
For the years ended 31 December
2009 2008
Restated
Note USD USD
Exploration expenses (4,695,271) (8,244,068)
Administrative expenses (2,430,171) (2,461,734)
Administrative expenses- Share options expense (49,778) (203,350)
Administrative expenses- Other operating (32,205) (34,998)
expense
Administrative expenses- Foreign exchange loss (240,532) (645,972)
=------------------------------------------------------------------------------
Operating loss (7,447,957) (11,590,122)
Financial income 19,048 226,753
Taxation - -
=------------------------------------------------------------------------------
Loss for the year, attributable to equity
shareholders of the Parent (7,428,909) (11,363,369 )
=------------------------------------------------------------------------------
Loss per share (basic and diluted) - USD cents 2 (8.22)c (15.81)c
=------------------------------------------------------------------------------
See note 4 for details of the restatement of the share options expense for 2007
and 2008.
Consolidated statement of comprehensive income
For the years ended 31 December
2009 2008
Restated
USD USD
Loss for the period, attributable to shareholders (7,428,909) (11,363,369)
of the Parent
Other comprehensive income:
Exchange differences on translating foreign (343,968) (187,829)
operations
Income tax relating to components of other - -
comprehensive income
=-----------------------------------------------------------------------------
Other comprehensive income for the year, net of (343,968) (187,829)
tax
=-----------------------------------------------------------------------------
Total comprehensive income for the period (7,772,877) (11,551,198)
=-----------------------------------------------------------------------------
See note 4 for details of the restatement of the share options expense for 2007
and 2008.
Consolidated balance sheet
At 31 December
2009 2008 2007
Restated Restated
USD USD USD
Assets
Non-current assets
Intangible assets 60,558 99,473 4,797
Property, plant and equipment 1,221,765 2,022,414 1,215,273
Other receivables - - 37,740
=---------------------------------------------------------------------------
1,282,323 2,121,887 1,257,810
=---------------------------------------------------------------------------
Current assets
Inventories 156,691 59,587 475,846
Trade and other receivables 418,239 434,610 742,433
Cash and cash equivalents 6,812,046 1,375,445 13,128,822
=---------------------------------------------------------------------------
7,386,976 1,869,642 14,347,101
Assets held for sale - 39,562 -
=---------------------------------------------------------------------------
7,386,976 1,909,204 14,347,101
=---------------------------------------------------------------------------
Total assets 8,669,299 4,031,091 15,604,911
=---------------------------------------------------------------------------
Liabilities and equity
Equity attributable to shareholders
Share Capital 1,129,110 718,834 718,834
Share premium 27,499,843 15,665,928 15,665,928
Other reserves 13,312,190 13,403,158 13,239,318
Translation reserve (939,856) (595,888) (408,059)
Retained losses (32,798,843) (25,510,680) (14,186,821)
=---------------------------------------------------------------------------
8,202,444 3,681,352 15,029,200
=---------------------------------------------------------------------------
Current liabilities
Trade payables 285,890 69,525 401,253
Accrued liabilities 180,965 280,214 174,458
=---------------------------------------------------------------------------
466,855 349,739 575,711
=---------------------------------------------------------------------------
Total liabilities and equity 8,669,299 4,031,091 15,604,911
=---------------------------------------------------------------------------
See note 4 for details of the restatement of the share options expense for 2007
and 2008.
Consolidated statement of changes
in equity
For the years ended 31 December
Share Share Retained Other Translation
capital premium losses USD reserves reserve USD Total USD
USD USD USD
Balance at
31 December 718,834 15,665,928 (11,995,860) 11,048,357 (408,059) 15,029,200
2007
Restatement - - (2,190,961) 2,190,961 - -
=-----------------------------------------------------------------------------------
Balance at
31 December 718,834 15,665,928 (14,186,821) 13,239,318 (408,059) 15,029,200
2007
(restated)
Currency - - - - (187,829) (187,829)
translation
=-----------------------------------------------------------------------------------
Net income
recognised - - - - (187,829) (187,829)
directly in
equity
Loss for
the year
ended - - (11,363,369) - - (11,363,369)
31 December
2008
=-----------------------------------------------------------------------------------
Total
recognised
income and - - (11,363,369) - (187,829) (11,551,198)
expense for
the year
Share
options - - 39,510 (39,510) - -
lapsed
Share
options - - - 203,350 - 203,350
expense
=-----------------------------------------------------------------------------------
Balance at
31 December 718,834 15,665,928 (25,510,680) 13,403,158 (595,888) 3,681,352
2008
Currency - - - - (343,968) (343,968)
translation
=-----------------------------------------------------------------------------------
Net income
recognised - - - - (343,968) (343,968)
directly in
equity
Loss for
the year
ended - - (7,428,909) - - (7,428,909)
31 December
2009
=-----------------------------------------------------------------------------------
Total
recognised
income and - - (7,428,909) - (343,968) (7,772,877)
expense for
the year
Share
options - - 140,746 (189,657) - (48,911)
lapsed
Share
options - - - 98,689 - 98,689
expense
Issuance of
shares for 410,276 12,351,904 - - - 12,762,180
cash
Share issue - (517,989) - - - (517,989)
costs
=-----------------------------------------------------------------------------------
Balance at
31 December 1,129,110 27,499,843 (32,798,843) 13,312,190 (939,856) 8,202,444
2009
=-----------------------------------------------------------------------------------
Consolidated cash flow statement
For the years ended 31 December
2009 2008
Restated
USD USD
Operating activities
Loss for the year before and after tax (7,428,909) (11,363,369)
Adjustments:
Amortisation expense - intangible assets 33,929 21,791
Depreciation expense - property, plant and 654,224 613,029
equipment
Loss on disposal of property, plant and equipment 37,546 19,701
Finance income (19,048) (226,753)
Share based payments 49,778 203,350
Foreign exchange (64,025) 618,990
(Increase)/Decrease in inventories (106,800) 416,259
(Increase)/Decrease in accounts receivable (19,489) 393,189
Increase/(Decrease) in accounts payable 117,116 (225,972)
=------------------------------------------------------------------------------
Net cash flow used in operations (6,745,678) (9,529,785)
=------------------------------------------------------------------------------
Investing activities
Purchase of computer software (117) (116,467)
Purchase of property plant and equipment (44,680) (1,642,604)
Proceeds from sale of equipment 42,500 41,885
Purchase of assets held for sale - (39,562)
Loans issued - (93,316)
Loans repaid 48,557 53,360
Interest received 6,600 219,084
=------------------------------------------------------------------------------
Net cash used in investing activities 52,860 (1,577,620)
=------------------------------------------------------------------------------
Financing activities
Proceeds from issue of share capital 12,762,180 -
Issue costs (517,989) -
=------------------------------------------------------------------------------
Net cash from financing activities 12,244,191 -
=------------------------------------------------------------------------------
Net change in cash and cash equivalents 5,551,373 (11,107,405)
Cash and cash equivalents at beginning of the year 1,375,445 13,128,822
Effect of changes in foreign exchange rates (114,772) (645,972)
=------------------------------------------------------------------------------
Cash and cash equivalents at end of the year 6,812,046 1,375,445
=------------------------------------------------------------------------------
Notes:
1 Preparation of accounts
The financial information set out in this announcement does not constitute the
Company's statutory accounts for the years ended 31 December 2009 or 2008. The
statutory accounts for the year ended 31 December 2009 have been finalised on
the basis of the financial information presented by the directors in this
preliminary announcement.
The consolidated balance sheet at 31 December 2009, the consolidated income
statement, consolidated statement of changes in equity, consolidated cash flow
statement and associated notes for the year then ended have been extracted from
the Group's 2009 annual financial statements upon which the auditors' opinion is
unqualified.
2 Loss per share
Loss per share is calculated by reference to the loss for the year of USD
7,428,909 (2008 restated: USD 11,363,369) and the weighted number of shares in
issue during the year of 90,367,958 (2008: 71,883,433). There is no dilutive
effect of share options.
3 Selected accounting policies
Basis of preparation of financial statements
The financial information has been prepared on the historical cost basis and in
accordance with International Financial Reporting Standards (IFRSs and IFRIC
interpretations) as adopted by the European Union.
At 31 December 2009, the Company had cash and cash equivalents of USD 6.8
million and no borrowings. Based on a review of the Company's budgets, and given
cash flow plans and the flexibility to alter these to suit prevailing
circumstances, the Board considers this is sufficient to maintain the Company as
a going concern for a period of over twelve months from the date of signing the
annual report and accounts. Completion of a feasibility study and bringing the
project to production will require further funding.
Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the
financial and operating policies of another entity or business so as to obtain
benefits from its activities, that entity or business is classified as a
subsidiary. The consolidated financial statements present the results of the
Company and its subsidiaries as if they formed a single entity. Intercompany
transactions and balances between group companies are therefore eliminated in
full. As permitted by BVI law the Company has not presented its own financial
information.
The consolidated income statement for the year ended 31 December 2008
consolidated the results of Chaarat Gold Holdings Limited, Chaarat Gold Limited
and Chaarat Zaav CJSC for the whole year. The consolidated income statement for
the year ended 31 December 2009 consolidated the results of Chaarat Gold
Holdings Ltd, Chaarat Gold Limited and Chaarat Zaav CJSC for the whole year and
Chaarat Operating Company GmbH since its registration on 16 March 2009.
Mining exploration and development costs
During the exploration phase of operations, all costs are expensed in the Income
Statement as incurred.
A subsequent decision to develop a mine property within an area of interest is
based on the exploration results, an assessment of the commercial viability of
the property, the availability of financing and the existence of markets for the
product. Once the decision to proceed to development is made development and
other expenditures relating to the project are capitalised and carried at cost
with the intention that these will be depreciated by charges against earnings
from future mining operations over the relevant life of mine on a unit of
production basis.
4 Restatement of Administrative expenses - share options expense
On revisiting the fair value estimates of the share options management
identified that the share based payment charges were incorrectly scheduled and
as a result have reduced the period over which the share based payment is
charged to be the vesting period attached to options. As a result the years
ended 31 December 2007 and 2008 have been restated.
The effect of the restatement is detailed in the table below:
Original Restatement Restated
USD USD USD
2007
Income statement
Share option charges 163,306 2,191,460 2,354,766
Loss per share USD cents (11.2) (3.8) (15.0)
Balance sheet
Other reserves 11,048,357 2,190,961 13,239,318
Retained losses (11,995,860) (2,190,961) (14,186,821)
2008
Share option charges 752,345 (548,995) 203,350
Loss per share USD cents (16.6) 0.8 (15.8)
Balance sheet
Other reserves 11,782,189 1,620,969 13,403,158
Retained losses (23,889,711) (1,620,969) (25,510,680)
5 Timetable and distribution of accounts
The report and financial statements together with the Notice of AGM and Proxy
form will be despatched to shareholders on 4 June 2010 and the Annual General
Meeting will be held at 14:00 on 30 June 2010 at the offices of the Company's
Nominated Adviser, Westhouse Securities Limited, One Angel Court, London, EC2R
7HJ.
Additional copies of the Annual Report and Accounts, Notice of AGM and Proxy
form will be available, free of charge, from Central Asia Services Limited, 6
Conduit Street, London, W1S 2XE, for a period of 14 days from the date of
posting and will be made available on the Company's website - www.chaarat.com.
Enquiries:
Chaarat Gold Holdings Ltd
c/o Central Asia Services Ltd +44 (0) 20 7499 2612
Dekel Golan dekel@chaarat.com <mailto:dekel@chaarat.com>
Linda Naylor linda.naylor@chaarat.com
<mailto:linda.naylor@chaarat.com>
Westhouse Securities Limited +44 (0) 20 7601 6100
Tim Feather tim.feather@westhousesecurities.com
<mailto:tim.feather@westhousesecurities.com>
Richard Baty richard.baty@westhousesecurities.com
<mailto:richard.baty@westhousesecurities.com>
Mirabaud Securities LLP +44 (0) 20 7321 2508
Rory Scott rory.scott@mirabaud.com
<mailto:rory.scott@mirabaud.com>
Smith's Corporate Advisory +44 (0) 20 7239 0140
Dominic Palmer-Tomkinson tomkinson@smiths-ca.com
<mailto:tomkinson@smiths-ca.com>
Conduit PR +44 (0) 20 7429 6603
Jos Simson jos@conduitpr.com <mailto:jos@conduitpr.com>
Emily Fenton emily@conduitpr.com <mailto:emily@conduitpr.com>
Chaarat
Chaarat is an exploration and development company operating in the Kyrgyz
Republic with its current main activity being the development of the Chaarat
Gold Project. The Chaarat Gold Project is situated within the Middle Tien Shan
Mountains of Kyrgyzstan which form part of the Tien Shan gold belt. The Company
has thus far delineated a JORC compliant mineral resource of 4.009 Moz at a
grade of 4.14 g/t gold. A scoping study demonstrating the economic viability of
the Chaarat Gold Project was completed at the end of 2008. The Company is
currently in the process of compiling a pre-feasibility study. Chaarat's
objective is to become a low cost gold producer targeting an initial production
of over 200,000 ounces per annum by early 2013.
Disclaimer
This press release includes forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other important
factors beyond Chaarat's control that would cause the actual results,
performance or achievements of Chaarat to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding Chaarat's present and future business strategies
and the environment in which Chaarat will operate in the future. Any
forward-looking statements speak only as at the date of this document. Chaarat
expressly disclaims any obligation or undertaking to disseminate any updates or
revisions to any forward-looking statements contained in this document to
reflect any change in Chaarat's expectations with regard to these or any change
in events, conditions or circumstances on which any such statements are based.
As a result of these factors, the events described in the forward-looking
statements in this press release may not occur either partially or at all.
[HUG#1417458]
Chaarat Gold (LSE:CGH)
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