https://www.miningweekly.com

Chaarat returns to Aim

14th December 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

Chaarat Gold’s share price fell sharply following its readmission to London’s Aim market on Friday, after an eight-month suspension under the exchange’s reverse takeover rules.

The company’s ordinary shares resumed trading at 11:30 London time, and fell 16% to 20.25p a share just before midday.

Since its suspension on April 24, Chaarat has been transformed with a new board and management, while executing its new strategy with the closing of its first major acquisition expected soon.

The company is buying the Kapan polymetallic mine from fellow-listed Polymetal for $55-million. Shareholders will vote on the acquisition at a general meeting on December 31, in London.

Chaarat reported that it had secured improved terms for the acquisition, which would strengthen its financial position. Polymetal has agreed to accept $10-million of the $55-million total consideration in convertible notes of the company, rather than $5-million as previously announced.

The change is conditional on closing the Kapan acquisition by no later than January 15.

In addition, Chaarat announced several board changes and executive appointments, including the appointment of Hussein Barma as an independent nonexecutive director. He has significant FTSE senior executive experience, having spent 16 years at Antofagasta between 1998 and 2014 where he held the position of CFO.

Gordon Wylie, already a board member and a former senior executive at AngloGold Ashanti, has been appointed as deputy chairperson and senior independent director of the company.

Dorian (Dusty) Nicol, currently technical director and head of exploration at Chaarat, is stepping down from the board. He will join the executive team as senior VP for exploration with immediate effect. Richard Rae, current senior independent non-executive director and the company's longest-serving board member, has resigned as a non-executive director.

Sergei Zhukov will join the company as head of legal and company secretary. He was previously responsible for legal and compliance matters at the Moscow subsidiary of Credit Suisse covering operations in Russia, Ukraine and Kazakhstan.

“I am pleased to welcome Hussein to the Chaarat board. As I have stated in the past, a key priority at this important time for the company has been to add independent non-executive directors with significant mining experience and track-record. Hussein's appointment strengthens Chaarat's expertise in compliance, audit and governance, which are essential for our long-term plans to create value for current and future investors. Our intention is to appoint another independent non-executive director in due course,” said Chaarat executive chairperson Martin Andersson.

He also thanked Rue and Nicol for their contributions to the board.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION