Chaarat mulls sale of Kapan mine
Aim-quoted gold miner Chaarat Gold is evaluating financing options, including the sale of its only operating mine, Kapan, in Armenia, CEO Mike Fraser reported on Friday.
In addition, the company remains in discussions with investment management company Xiwang for a potential investment and the parties have extended the targeted timeline for completion by up to four months from July 30.
The current discussions with Xiwang envisage a capital allocation for Chaarat’s Kyrgyz assets to develop Tulkubash project, which remains ready for a final investment decision once financing is secured.
Chaarat previously said that it required further financing by the end of the third quarter to sustain corporate activities and to proceed with the development in Kyrgyz Republic.
The miner said that the structure currently envisioned for the sale of Kapan would likely constitute a transaction which resulted in a fundamental change of business, and in accordance with Aim rules.
Chaarat noted that there were currently no binding agreements in place with regard to additional funding or the sale of Kapan.
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