11th Sep 2019 14:33
(Alliance News) - Chaarat Gold Holdings Ltd on Wednesday said it has secured an increased loan facility from an unnamed lender.
The mining company, which has assets in the Kyrgyz Republic and Armenia, said the size of the loan has risen to USD17.0 million from USD10.0 million. A new maturity date of March 31, 2020, has also been agreed.
As part of the new agreement, Labro Investments Ltd will serve as a guarantor to the financing and in exchange will receive 2.0% of the USD17.0 million from, payable in cash or in Chaarat shares. All the other terms of the loan are unchanged, including the 13% annual interest charge.
Chaarat also has drawn a further USD2.5 million from Labro as part of an existing working capital facility.
The company further said that it is close to securing funding for work on the Tulkubash project located in Kyrgyzstan. Chaarat has "commenced project financing discussions with international groups" and is working to secure funding by early 2020.
The miner additionally has closed a convertible bond it issued to raise new subscriptions. The company most recently in July issued USD500,000 worth of convertible bonds to an unnamed investor .
Shares in Chaarat were 4.0% lower at 26.60 pence each in London on Wednesday afternoon.
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