Chaarat Gold Holdings Ltd Extension of Convertible Loan Notes (9493B)
06 October 2022 - 5:00PM
UK Regulatory
TIDMCGH
RNS Number : 9493B
Chaarat Gold Holdings Ltd
06 October 2022
6 October 2022
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Extension of Convertible Loan Notes
Chaarat Gold (AIM: CGH), the AIM-quoted gold mining Company with
an operating mine in Armenia, and assets at various stages of
development in the Kyrgyz Republic, is pleased to announce the
extension of the maturity of its secured convertible loan notes
2022 (the "Loan Notes") from 31 October 2022 to 31 July 2023 (the
"Extension Agreement").
The Extension Agreement, which required the consent of the
holders of a majority in value of the Loan Notes, has been approved
on the same terms as those currently applicable to the Loan Notes
but with interest being capitalised as at 31 October 2022.
Therefore, with effect from 1 November 2022, the principal amount
of the Loan Notes will be US$28.7 million which will incur interest
at the current rate of 12%. Additionally, a one-off fee equal to 1%
of the principal amount of the Loan Notes will be payable to Loan
Note holders as remuneration for the Extension Agreement (the
"Extension Fee"). A single interest payment will be due on the
extended final repayment date of 31 July 2023 provided that no
conversion or early repayment has occurred. The Loan Notes can be
repaid early in cash at the Company's option upon 10 business days'
notice.
As of 31 October 2022, the outstanding balance of the Loan Notes
would have been the principal amount of US$19.7 million plus
accrued interest of US$9.0 million. If not repaid early, the
principal amount outstanding of the Loan Notes as at 31 July 2023
will be US$28.7 million plus accrued interest of US$2.6 million and
Extension Fee of US$0.2 million.
If all the Loan Notes convert assuming full conversion of
principal, the Extension Fee and interest to the extended maturity
date of 31 July 2023, 77,005,827 ordinary shares of US$0.01 each
("Ordinary Shares") will fall due to be issued to Loan Note
holders.
As previously stated Labro Investments Limited ("Labro"), a
substantial shareholder in the Company the majority of shares in
which Martin Andersson (the executive chair of Chaarat) is
interested, holds US$1.0 million of Loan Notes excluding accrued
interest (the "Labro Notes"). If all the Labro Notes convert
assuming full conversion of principal and interest to the extended
maturity date of 31 July 2023 , then 3,924,775 Ordinary Shares will
fall due to be issued to Labro.
Mike Fraser, Chief Executive Officer of Chaarat, said:
"Chaarat is appreciative of the continued support from its
noteholders. The maturity extension allows the Company to focus on
moving forward with its growth plans."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014 (which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
2018).
Enquiries
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
Mike Fraser (Chief Executive Officer) info@chaarat.com
Canaccord Genuity Limited (NOMAD and + 44 (0)20 7523
Joint Broker) 8000
Henry Fitzgerald-O'Connor
James Asensio
+44 (0)20 7220
finnCap Limited (Joint Broker) 0500
Christopher Raggett
Panmure Gordon (UK) Limited (Joint +44 (0)20 7886
Broker) 2500
John Prior
Hugh Rich
About Chaarat
Chaarat is a gold mining company which owns the Kapan operating
mine in Armenia as well as Tulkubash and Kyzyltash Gold Projects in
the Kyrgyz Republic. The Company has a clear strategy to build a
leading emerging markets gold company through organic growth and
selective M&A.
Chaarat aims to create value for its shareholders, employees and
communities from its high-quality gold and mineral deposits by
building relationships based on trust and operating to the best
environmental, social and employment standards. Further information
is available at www.chaarat.com/ .
ENDS
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