17th May 2023 16:55
(Alliance News) - Chaarat Gold Holdings Ltd on Wednesday said it was in talks with Xiwang International Co Ltd for a potential equity investment of USD250 million, sending its shares soaring.
The investment would be in the form of a new issue of shares in Chaarat at a price of 20 pence each, resulting in Xiwang taking a 60% stake in the firm.
Shares in Chaarat Gold leapt 28% to 11.30 pence in London on Wednesday.
Chaarat, a gold mining company with an operating mine in Armenia, and assets in the Kyrgyz Republic, said the Investment would be used to develop its organic pipeline and external growth through value-added acquisitions.
The two firms have signed a non-binding letter of intent and should the investment be completed, it is anticipated that Xiwang would have the right to appoint two members to the Chaarat board.
Chaarat and Xiwang expect to agree the terms of a preliminary investment agreement by the end of May 2023.
Upon completion of the deal, it is the intention of the parties to enter into a formal investment agreement with completion by July 30.
Xiwang International is an investment company incorporated in the British Virgin Islands looking to create a significant portfolio of mining assets and resources on a global basis.
By Jeremy Cutler, Alliance News reporter
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