27th Dec 2019 09:04
(Alliance News) - Chaarat Gold Holdings Ltd on Friday said it has signed an agreement with the government of the Kyrgyz Republic related to its Tulkubash and Kyzyltash projects.
The AIM-listed gold mining company said the agreement is based on the investments law of the Kyrgyz Republic, which stimulates investment by providing investors with formal assurances on the stability of the country's tax regime.
Thus, Chaarat said it and its local subsidiary are entitled to benefit from any future changes in direct taxes and a number of non-tax payments during the next ten years. If however any of the taxes specified in the agreement are increased, Chaarat and the subsidiary are entitled to apply the rates effective as at the date of the agreement.
"This agreement shows strong support for Chaarat in country and is a strong endorsement for the company going forward. This also highlights both Chaarat's and the government's focus on the stability of our future operations and allows us both to continue to commit to the development of this project," said Chief Executive Artem Volynets.
Turning to operations, Chaarat said construction continues to progress at Tulkubash, with first gold production on track for late 2021. Chaarat said it is due to announce an updated resource & reserve statement for the project in the first quarter of 2020.
In addition, the company said it continues to advance project financing discussions for Tulkubash with "several international groups".
"Financing work for Tulkubash is progressing well and we are now at the term-sheet stage. We look forward to providing further financing updates on this work and other refinancing workstreams in the first quarter of 2020," said Volynets.
Chaarat said it also is considering refinancing debt maturing in the first quarter of 2020 to reduce the cost of capital of the existing facilities.
The stock was untraded in London on Friday morning, last closing at 35.54 pence a share.
By Evelina Grecenko; [email protected]
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