5th Feb 2021 14:31
Chaarat Gold Holdings Ltd - gold mining company with assets in Kyrgyzstan and Armenia - Says Labro Investments Ltd has now subscribed for 62.4 million shares at a 26 pence per share issue price. The USD22.2 million Labro subscription has been satisfied by conversion of the entire outstanding USD22 million term loan due to Labro from Chaarat, plus GBP220,000 of accrued interest. This conversion extinguishes the Labro term loan, saving Chaarat USD2.1 million in interest payment per year for 2021 to 2024.
Chaarat's debt position is now USD46.5 million, a 33% reduction. Though the subscription, Labro now holds an approximately 42% equity ownership of Chaarat. A further 55,240 Chaarat shares have been issued to Labro relating to a November drawdown by Chaarat on a Labro working capital facility.
The agreement with Labro follows an announcement by Chaarat earlier Friday of a fundraise for around USD25 million, also at 26p per share. At that time, Chaarat said USD23.5 million had been committed through subscriptions, representing 65.9 million shares, and USD1.4 million in non-binding commitments. The funds received represent the remainder of the upfront equity portion to fund the Tulkubash project, with a total of around USD110 million needed. Chaarat also said it was in ongoing discussions on debt financing of approximately USD80 million and anticipated having this completed in the first half of this year.
Current stock price: 26.40p
Year-to-date change: up 15%
By Anna Farley; [email protected] and Greg Roxburgh; [email protected]
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