An exploration and development company, with a focus in the Kyrgyz Republic, looks set to acquire a medium-sized polymetallic asset.
Chaarat Gold Holdings has announced in a statement this week that it has acquired a medium sized polymetallic asset located in the Commonwealth of Independent States. The project produced around 50,000 oz of gold equivalent in 2017.
The deal was valued at $75 million and will play a key role in the company’s transformation from a developer into a cash-flow generating producer with significant growth profile.
In the same announcement, Chaarat also declared that it has completed the first phase of up to $100 million of a convertible debt placement.
The gross proceeds of up to US$100m from the Fundraise are anticipated to be used as for funding of the acquisition ($20 million) as well as developing the company’s Tulkubash project and for the the identification of and exploration of potential future acquisitions.
“This first round of fundraising is a clear expression of confidence in Chaarat's management and growth strategy. We are grateful that nearly all of Chaarat's long-term investors have taken their opportunity to increase their exposure to our Company's bright future, and we thank them for their ongoing support,” Artem Volynets, Chief Executive Officer of Chaarat,
"The first asset we are acquiring will be an excellent addition to Chaarat's portfolio and accelerates our strategic aim of building a leading emerging markets gold company. It turns the Company cashflow-generative in a single step, and demonstrates Chaarat Gold's ability to execute deals quickly, diligently and on accretive terms. M&A is a vital component of our growth strategy and we are delighted to be in the process of securing this asset at what management believe is a very attractive price for Chaarat and its shareholders."