Vox Markets Logo

Chaarat Gold raises $5.8 million in institutional placing

10:05, 14th November 2019
Abraham Darwyne
Company News
TwitterFacebookLinkedIn

Chaarat Gold (CGH) FOLLOW raised $5.8 million in a placing on Thursday with new and existing institutional investors.

The gold mining company that owns the owns the Kapan operating mine in Armenia, as well as Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic, issued 12,892,855 new shares at 35p each.

It also issued 175,000 warrants for new shares which it said were exercised at 15p each, bringing the total to just over 13 million new shares which it expects to start trading on the 19th November 2019.

Artem Volynets, Chief Executive Officer, said: "The prime motivation behind this placing was to strengthen the institutional investor base of the Company by providing the opportunity for institutional investors to purchase blocks of shares and the funds will support our various growth initiatives and strengthen our balance sheet.”

CGH price chart

Mr. Volynets added: “We believe that the ongoing execution of our strategy, the successful operational improvements of the Kapan mine in Armenia, along with progress on the Tulkubash construction programme in the Kyrgyz Republic, will make Chaarat a stronger investment prospect for investors looking to access growth gold mining opportunities in the FSU region."

Labro Investments Limited, a company connected to Chaarat’s executive chairman, was issued almost 3 million shares in the placing and is to hold 34.96% of the company once shares start trading on the 19th.

10,014,284 shares were issued to new investors, including what Chaarat described as “two of the leading global institutional investors”.

Chaarat’s working capital facility with Labro was reduced by US$1.3 million, bringing it to approximately US$3.5 million, the company said.

Follow News & Updates from Chaarat Gold here: FOLLOW

TwitterFacebookLinkedIn

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Recent Articles
Watchlist