leadf
logo-loader
viewChaarat Gold Holdings Ltd

Chaarat Gold extends maturity date on US$17mln loan, posts 2019 results

The gold miner said it has agreed the extension with the provider of the loan to December 31, 2020 from March 31

Chaarat Gold Holdings Ltd - Chaarat Gold extends maturity date on US$17mln loan

Chaarat Gold Holdings Limited (LON:CGH) has agreed to extend the maturity date of a US$17mln loan and accrued interest of US$2.4mln to December 31, 2020, from March 31.

The gold miner said it had agreed the extension with the provider of the loan, adding that it will maintain the existing interest charge of 13% payable at maturity.

WATCH: Chaarat Gold reports 'minimal disruption' from outbreak as product demand remains strong

The company also said Labro Investments Limited, its largest shareholder, has agreed to extend and increase an existing security package it has provided to the lender beyond what was previously announced on September 11, 2019.

Chaarat is also in advanced discussions to agree terms with Labro regarding compensation for providing the extended and increased security package.

"We are pleased to announce the extension of the loan agreement and support provided to Chaarat. At the moment, it is hard to predict when the current challenging market environment will normalise, and we are delighted to see such strong support from our debt investor and our largest shareholder”, said Chaarat chief executive Artem Volynets in a statement.

Full-year 2019 results

In a separate update, Chaarat Gold also published its results for the year ended December 31, 2019, which showed it achieved underlying earnings (EBITDA) at the standalone Kapan Company level, before group accounting and non-cash adjustments, of US$12.7mln for the period.

Chaarat acquired the Kapan Mine in Armenia in early 2019, transforming the group from a developer to a producer.

Martin Andersson, Chaarat’s executive chairman said: "I am delighted with the successful integration of the Kapan mine into the Company and the progress made at our assets in the Kyrgyz Republic adding significant value for our shareholders and all stakeholders in general.”

He added: “I look forward to the rest of the year as we continue to build an industry-leading Central Asia and FSU low cost gold producer with a sound organic growth strategy supported by selective M&A."

Chaarat Gold shares were 3.7% lower at 26p in late afternoon trading.

 -- Adds results, updates share price --

Quick facts: Chaarat Gold Holdings Ltd

Price: 25.1 GBX

AIM:CGH
Market: AIM
Market Cap: £131.67 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Chaarat Gold Holdings Ltd named herein, including the promotion by the Company of Chaarat Gold Holdings Ltd in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Investors turning to gold following US withdrawal from Iran Nuclear Deal

Mining Capital's Alastair Ford discusses the implications on gold and oil following the US withdrawal from the Iran Nuclear deal. Ford also touches on Chaarat Gold Holdings Ltd's (LON:CGH) potential acquisition of the Kumtor mine from Centerra Gold Inc. Plus he also looks ahead to...

on 11/5/18

2 min read