Chaarat Gold Holdings Ltd SUPPORT FOR CHAARAT PROJECT IN COUNTRY RE-AFFIRMED (5073X)
27 November 2017 - 6:00PM
UK Regulatory
TIDMCGH
RNS Number : 5073X
Chaarat Gold Holdings Ltd
27 November 2017
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
SUPPORT FOR CHAARAT GOLD PROJECT IN COUNTRY RE-AFFIRMED
MINING FRIENDLY CREDENTIALS FURTHER IMPROVED
Road Town, Tortola, British Virgin Islands (27(th) November
2017)
Chaarat (AIM: CGH), the AIM quoted company developing the
Chaarat Gold Project in the Kyrgyz Republic, is pleased to provide
a report of the recent visit to the Kyrgyz Republic by the
Chairman, Martin Andersson.
Highlights
-- Support for the development of the Chaarat Project
re-affirmed by leader of largest party in Kyrgyz Parliament
-- Additional mining friendly legislation introduced to stabilise tax rates
-- Improvements to mining sector to be identified in sector study which is underway
-- Continuing dialogue between government and mining industry actively encouraged
Martin Andersson, Chairman of Chaarat, comments: "2017 has seen
a significant improvement in the perception of the Kyrgyz Republic
as a mining friendly jurisdiction. We undertook in January, when I
met with representatives of the Kyrgyz Government and Parliament,
to assist with raising the profile and educating global investors
about the Kyrgyz Republic as an investment destination.
Since then Chaarat has co-hosted a Kyrgyz Investment Forum with
the European Bank for Reconstruction and Development in London. We
have signed a licence agreement with the Kyrgyz Government which
confirms approval to take the Chaarat Project into production.
There has been a successful resolution of the long running dispute
between the Kyrgyz Government and Centerra in relation to the
Kumtor mine.
In October, the election of a new president was a peaceful
transition of power to Mr Sooronbay Jeenbekov. His inauguration
took place last Friday.
I was very encouraged during my visit to Bishkek last week to
see further evidence that the Kyrgyz Republic continues to
demonstrate that it is "a true democracy - open for business" which
was the title of our Investment Forum.
Legislation has recently been enacted to enable companies to
sign a Stabilisation Agreement with the Government. This means tax
rates will be stabilised for the life of a project. Tax rates may
be reduced once a Stabilisation Agreement is in place, but
companies will be protected from any increase in rates. Chaarat has
begun to work on concluding a Stabilisation Agreement in
conjunction with an Investment Agreement which will enshrine the
right to seek international arbitration in case of any future
dispute with the Government.
Our in-country team, led by Alexander Novak, was part of a group
that was consulted during the formation of legislation affecting
mining companies and through this group involved in the drafting of
the stabilisation legislation.
We are one of the leading members of the International Business
Council ("IBC") which represents companies who together contribute
in excess of 55% to the state budget. A study of the mining sector
has been commissioned by the IBC to provide input to the continuing
consultation between the private sector and government on how to
balance the interests of industry and country for the benefit of
all stakeholders.
We look forward to continuing our active part in the process, as
well as our development of the Tulkubash heap leach project, which
was fully endorsed by the leader of the largest party in the Kyrgyz
Parliament, Mr Isa Omurkulov, whom I had the pleasure of meeting
during my visit."
Enquiries:
Chaarat Gold Holdings
Limited + 44 (0) 20 7499 2612
Martin Andersson Chairman info@chaarat.com
Linda Naylor FD/Company
Secretary
Numis Securities Limited +44 (0) 20 7260 1000
John Prior, Paul Gillam
(NOMAD)
James Black (Broker)
About Chaarat Gold
Chaarat Gold is an exploration and development company operating
in the Kyrgyz Republic with a large, high grade resource - the
Chaarat Gold Project. The Company's key objective is to become a
long term, low-cost gold producer.
Chaarat aims to create value for its shareholders, employees and
communities in the Kyrgyz Republic by building relationships based
on trust and operating to the best environmental, social and
employment standards.
Further information is available at www.chaarat.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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