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Chaarat flags potential $250m investment

17th May 2023

By: Creamer Media Reporter

     

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Shares in Chaarat Gold jumped 44% on the Aim on Wednesday, after the company announced a potential $250-million investment from Xiwang International.

The investment would be used to develop Chaarat’s organic pipeline and external growth through value-added acquisitions, the Aim-quoted company reported.

The investment would be in the form of a new issue of shares in Chaarat at a price of £0.20 a share resulting in Xiwang holding 60% of the shares in Chaarat.  Should the investment be completed, it is anticipated that Xiwang would have the right to appoint two members to the Chaarat board. 

As part of the completion documentation, it is expected that Xiwang and Chaarat would enter into a relationship agreement containing provisions typically found in such an agreement to ensure that the Company would continue to operate independently.

Chaarat and Xiwang expect to agree the terms of a preliminary investment agreement (PIA) by the end of May 2023. Upon completion of the PIA, it is the intention of the parties to enter into a formal investment agreement with completion by the end of July.

"We are pleased to have taken the discussions with Xiwang to this stage. We will now work with Xiwang towards progressing the PIA and subsequent investment and relationship agreements to support the growth objectives of Chaarat

“Xiwang is undergoing a transformational change and Chaarat is one of the potential platforms for their investment consideration and passed their initial due diligence, governance and investment criteria,” said Chaarat executive chairperson Martin Andersson.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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