21st Jun 2016 07:59
LONDON (Alliance News) - Chaarat Gold Holdings Ltd Tuesday reported a narrowed loss for 2015 as it focused on finalised a definitive feasibility study for its Chaarat project in the Kyrgyz Republic, and said the extended deadline to submit its development plans for the project allows it more flexibility.
The company reported an operating loss of USD4.7 million, narrowed from an operating loss of USD14.5 million, mostly as a result of lower exploration expenses and a USD6.0 million impairment of assets booked the previous year.
Chaarat said its work in 2015 had been dominated by the finalisation of the study, the results of which were announced in early 2016.
The company said that, with the increased interest in gold projects that has accompanied the stabilisation of the gold price, it is keeping the door open for an acquirer or joint venture partner whilst adding value to the Chaarat deposit by developing a realistic, profitable option to get it into production.
Chaarat said the Kyrgyz government approved its application to extend the time in which regulatory approvals for the project's development have to be obtained to the end of 2018 from the end of 2016, giving it more time to discuss with potential joint venture partners.
"The publication of the DFS in early 2016 has provided a benchmark to underpin the value of the Chaarat Project and generated an increase in the level of interest shown by potential industry partners. We have maintained our twin track strategy of talking to potential acquirers or joint venture partners whilst working on our own staged development plans," said Chief Executive Officer Dekel Golan in a statement.
Shares in Chaarat were up 0.2% at 6.01 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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