London-listed Chaarat has completed the $55-million acquisition of Kapan Mining and Processing from fellow-listed Polymetal International.
Of the total consideration of $55-million, $10-million was settled on completion in convertible loan notes and $5-million was paid as a deposit in November. The remaining $40-million is payable in cash following the execution of certain settlement procedures. Payment is secured by a pledge over the Kapan shares in favour of Polymetal, which will be released upon receipt of payment on Friday.
As a result, trading in Chaarat’s shares has been suspended, with readmission to the Aim expected to take place on February 4 or 5.
In 2017, the Kapan mine produced about 50 000 oz of gold equivalent, generating more than $20-million in earnings before interest, taxes, depreciation and amortisation. It has gross assets of $96-million.
Chaarat expects to produce about 65 000 oz of gold equivalent in 2019.