Chaarat Gold (CGH) 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.”
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.
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