23rd Sep 2014 08:47
LONDON (Alliance News) - Chaarat Gold Holdings Ltd Tuesday said it has signed an agreement with China Nonferrous Metal Industry's Foreign Engineering and Construction Co (NFC) to complete the definitive feasibility study for the Chaarat Project in the Kyrgyz Republic.
The work will be carried out by NFC's affiliated design institute and majority owned subsidiary, China Nerin Engineering Co Ltd, which is due to complete the study during the first-half of 2015, said Chaarat.
In June, Chaarat said projected production from the site is expected to be increased significantly to at least 250,000 ounces of gold a year in the definitive feasibility study.
The study is neccessary to secure funding for the project. The company has seen renewed interest in gold projects in the Kyrgyz Republic from mainly Asian based companies from China, Japan, Korea and Indonesia, it said.
"Working with NFC/NERIN will pave the way to enable us to raise project finance quickly and efficiently," it added.
"It is my belief that this agreement is a first step towards a broader cooperation between our companies. In my meetings with President Wang and Vice President Qin [of NFC] it has been made very clear to me that NFC is interested in more than just the preparation of the feasibility study, and the management of both our companies have agreed to discuss further cooperation," said Charrat Chief Executive Dekel Golan.
Chaarat's shares were down 10% to 15.50 pence per share Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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