Chaarat raises $5.8m and reduces Labro debt
Aim-quoted gold miner Chaarat has raised $5.8-million from the issue of 12 892 855 new ordinary shares at 35p each.
Labro Investments took up 2 878 571 shares, which the company said was used to offset $1.3-million that it owned Labro, reducing its working capital facility to $3.5-million.
In addition, 175 000 new ordinary shares have been issued to satisfy the company's obligations under a warrant agreement, the warrants were exercised for cash at an aggregate share price of 15p.
“The prime motivation behind this placing was to strengthen the institutional investor base of the company by providing the opportunity for institutional investors to purchase blocks of shares and the funds will support our various growth initiatives and strengthen our balance sheet,” said CEO Artem Volynets.
Further, Chaarat said that it continued to evaluate “opportunistic capital opportunities” to either refinance existing financing facilities, fund working capital and/or reduce its overall cost of capital.
“Possible future capital raises will also come in the form of nondilutive and/or value accretive transactions in the form of additional convertible bonds or debt instruments.”
Chaarat traded at 35.31p on Thursday afternoon in London.
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