Update on Discussions with Shandong Gold

RNS Number : 7524Z

Chaarat Gold Holdings Ltd

12 March 2013

 

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

Update on discussions with Shandong Gold

Road Town, Tortola, British Virgin Islands, 12 March 2013

Chaarat (AIM - CGH), the AIM quoted gold exploration and development company with assets in the Kyrgyz Republic is pleased to provide an update on discussions with Shandong Gold Mineral Resources Group ("SGMR" or "Shandong Gold").

·     Significant progress in negotiations with SGMR

·     Delays due to a change in senior personnel in the SGMR group

•    Negotiations due to recommence in the near future

On 19 November 2012, Chaarat announced it was in discussions with SGMR, the third largest gold producer in China. The Company is pleased to announce that significant progress has been made towards agreeing a transaction.

However, discussions with SGMR have recently been delayed due to a change in senior personnel at the holding company level of the SGMR group.  Recommencement of the negotiations has now been agreed with the new management team. 

The Directors intend that any agreement will enhance long-term value for Chaarat shareholders.  However there can be no certainty that any agreement will be reached.

Dekel Golan, CEO of Chaarat, commented: "We announced last November that the Company was in discussions with Shandong Gold. Since that time significant progress has been made towards an agreement, which the Directors believe should be beneficial to our shareholders.  Discussions had to be postponed before the Chinese New Year due to a change in the senior management.  Now that the new members of SGMR's management are in place, recommencement of discussions has been approved and, although we cannot be certain, we hope that renewed negotiations will lead to a satisfactory outcome before too long.

In the meantime we have maintained momentum towards production. Our project team has submitted designs for approval and made significant progress with both permitting and procurement and the Chaarat project proceeds towards production. A further update on progress will be provided in due course."

Enquiries:  

Chaarat Gold Holdings Limited		[phone]
c/o Central Asia Services Limited
Dekel Golan   CEO		[e-mail]
Linda Naylor  FD		[e-mail]
Numis Securities Limited		[phone]
Alastair Stratton, Stuart Skinner (NOMAD)
James Black (Broker)
College Hill	[phone]
Matthew Tyler	[e-mail]
Anca Spiridon
Ali Roper

Further information is available at www.chaarat.com

 

NOTES TO EDITORS:

About Chaarat Gold

Chaarat Gold is an exploration and development company operating in the Kyrgyz Republic. Situated in the highly prospective Tien Shan gold belt the Company's principal strategy is the development of the Chaarat Gold Project with first gold production targeted during 2013. Chaarat's key objective is to become a low cost gold producer targeting annual production of 200,000 ounces.

In addition to the Chaarat Gold Project, the Company has several other promising prospects also located within the Kyrgyz Republic. An exploration programme is underway at both the Company's Chontash project, located in the Akshirak range of mountains, as well as at the Mironovskoye asset.

 

 

 

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