6th Oct 2022 10:31
(Alliance News) - Chaarat Gold Holdings Ltd on Thursday said it has extended its secured convertible loan notes from October 31, 2022, to July 31, 2023.
Chaarat Gold is a gold mining company which owns an operating mine in Kapan, Armenia, as well as the Tulkubash and Kyzyltash gold projects in Kyrgyzstan.
Chaarat shares were trading 15% higher at 11.45 pence each in London on Thursday morning.
The extension agreement has been approved on the same terms as those currently applicable to the loan notes, but with interest being capitalised as at October 31, 2022.
From November 1, the principal amount of the loan notes will be USD28.7 million, with interest at the current rate of 12%.
An additional one-off fee equal to 1.0% of the principal amount will be payable to loan note holders as remuneration for the extension agreement. A single interest payment will be due on the extended final repayment date, July 31.
If not repaid early, the principal amount outstanding of the loan notes will be USD28.7 million, plus accrued interest of USD2.6 million and an extension fee of USD200,000.
If they convert assuming full conversion of principal, the extension fee and interest to July 31, 77.0 million ordinary shares of USD0.01 each will fall due to be issued to loan note holders.
Labro Investments Ltd holds USD1.0 million of loan notes excluding accrued interest.
Chief Executive Officer Mike Fraser, said: "Chaarat is appreciative of the continued support from its noteholders. The maturity extension allows the Company to focus on moving forward with its growth plans."
By Holly Beveridge; [email protected]
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