Extension of Convertible Loan Notes

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
Chaarat Gold Holdings Limited	[phone]
Mike Fraser (Chief Executive Officer)	[e-mail]
Canaccord Genuity Limited (NOMAD and Joint Broker)	+ 44 (0)20 7523 8000
Henry Fitzgerald-O'Connor
James Asensio
finnCap Limited (Joint Broker)	[phone]
Christopher Raggett
Panmure Gordon (UK) Limited (Joint Broker)	[phone]
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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