Chaarat Gold Holdings Ltd Extension of investor loan (4146J)
09 Abril 2020 - 10:20AM
UK Regulatory
TIDMCGH
RNS Number : 4146J
Chaarat Gold Holdings Ltd
09 April 2020
9 April 2020
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Extension of investor loan
Chaarat (AIM:CGH), the AIM-quoted gold mining company with
assets in the Kyrgyz Republic and Armenia is pleased to announce
the extension of the maturity date of the US$17 million loan and
accrued interest of c.US$2.4 million originally announced on 15
November 2018 (RNS 4076H) (the "Loan").
The Company has agreed terms with the provider of the Loan (the
"Lender") to extend the maturity date of the Loan from 31 March
2020 to 31 December 2020 and to maintain the existing interest
charge of 13% payable at maturity. The key terms of the Loan are
summarised in the appendix. A fee of 150 basis points of the Loan
will be paid in cash to the Lender at closing.
Labro Investments Limited ("Labro"), the majority of shares in
which Chaarat's Executive Chairman is indirectly interested, is the
Company's largest shareholder with a shareholding of approximately
35.15%. Labro has agreed to extend and increase the associated
existing security package it has provided to the Lender beyond that
announced on 11 September 2019 (RNS 8933L) . Chaarat is in advanced
discussions to agree terms with Labro to compensate it for
providing this extended and increased security package to the
Lender.
Artem Volynets, Chief Executive Officer, said:
"We are pleased to announce the extension of the loan agreement
and support provided to Chaarat. At the moment, it is hard to
predict when the current challenging market environment will
normalise, and we are delighted to see such strong support from our
debt investor and our largest shareholder.
Enquiries
Chaarat Gold Holdings Limited +44 (0)20 7499 2612
Artem Volynets (CEO) info@chaarat.com
Numis Securities Limited +44 (0) 20 7260 1000
John Prior, Paul Gillam (NOMAD)
James Black (Corporate Broking)
SP Angel Corporate Finance
LLP + 44 (0) 20 3470 0470
Ewan Leggat (Joint Broker)
finnCap Limited +44 (0)20 7220 0500
Scott Mathieson (Joint Broker)
Camille Gochez (Joint Broker)
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 with an initial focus on
Central Asia and the FSU through organic growth and selective
M&A.
Chaarat is engaged in active community engagement programmes to
optimise the value of the Chaarat investment proposition.
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 .
Appendix
Summary of the key terms of the Loan
1. Principal - US$19.4 million (includes accrued interest).
2. Interest - 13% per annum payable at maturity.
3. Maturity date - 31 December 2020. If Chaarat pre-pays not
less than US$5 million within 45 days of closing, the maturity
date will be extended by a further 3 months to 31 March
2021.
4. Extension fee - 150 basis points.
5. Kapan:
(a) Chaarat is granting a second-ranking charge over Chaarat
Gold International Limited which owns the Kapan mine
operating subsidiary.
(b) 50% of any new debt raised in respect of Kapan, net
of such existing debt of Kapan as is refinanced, must
be used to prepay the Loan.
6. Other security - Labro is providing an extended and additional
security package directly to the Lender including a personal
guarantee from Chaarat's Executive Chairman.
7. Timing of closing - On perfection of the additional security
being provided by Chaarat and the extended and additional
security being provided.
8. Lender conversion rights - The Lender has the right to
convert up to US$5 million of the Loan into Chaarat shares
at the same price as any other Chaarat equity issuances
for a period of 45 days or, if none, at 25p, after which
this amount will decrease to US$2.5 million. A holding
period of 12 months applies to any Chaarat shares arising
on conversion of any part of the Loan.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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