SUPPORT FOR CHAARAT PROJECT IN COUNTRY RE-AFFIRMED

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	[e-mail]
Linda Naylor FD/Company Secretary
Numis Securities Limited	[phone]
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

 

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