16th Jan 2019 11:23
LONDON (Alliance News) - Chaarat Gold Holdings Ltd said on Wednesday it has extended the expected closing date for the acquisition of the Kapan polymetallic mine to January 31 from January 15.
This is due to the extended winter holiday season in Armenia and Russia.
At the end of October, the AIM-listed gold development company agreed to buy the Kapan polymetallic mine from FTSE 250 member Polymetal International PLC for USD55 million.
Chaarat secured antimonopoly clearance in December for the Kapan acquisition from the State Commission for the Protection of Economic Competition of the Republic of Armenia.
Chaarat has granted a pledge over the shares in has acquired in Kapan in favour of Polymetal, pending the payment to Polymetal of USD40 million in cash.
If the payment is not made 10 days after the completed acquisition, Polymetal has the right to unwind the transaction.
Shares in Chaarat Gold were up 1.8% at 27.99 pence, while Polymetal shares were down 0.8% at 847.40p on Wednesday.
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