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Chaarat Gold confirms acquisition being pursued is the Kapan Mining and Processing Company

Published: 15:27 26 Oct 2018 BST

Gold mine
Chaarat said in August that it was raising up to US$100mln to help fund the acquisition of a producing and profitable polymetallic mine

Chaarat Gold Holdings Limited (LON:CGH) has confirmed press speculation that the medium-sized polymetallic asset acquisition in the Russian Commonwealth of Independent States referred to in its announcement of 28 August 2018 is the Kapan Mining and Processing Company CJSC.

The AIM-quoted exploration and development company, with assets in the Kyrgyz Republic, said that at this stage there can be no certainty that the potential acquisition will be completed.

READ: Chaarat Gold to raise up to US$100mln to help fund acquisition of producing polymetallic mine

It added, should a deal be reached, the company plans to sign the sale and purchase agreement as soon as practicable and a further announcement will be made in due course.

Chaarat said in its August announcement that was raising up to US$100mln to help fund the acquisition of an unnamed producing and profitable polymetallic mine in the Russian Commonwealth.

In 2017, the group had said, mine produced around 50,000 ounces of gold equivalent and turned a profit before tax of US$19mln, while the gross assets were valued at US$100mln.

It added that the acquisition would transform the company from a developer into a cash-flow generating producer with a “significant growth profile”.

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