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Chaarat Gold Hlgs Ld (CGH)


Thursday 21 October, 2021

Chaarat Gold Hlgs Ld

Extension of Convertible Loan Notes

RNS Number : 8142P
Chaarat Gold Holdings Ltd
21 October 2021

21 October 2021

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 successful extension of the maturity of its secured convertible loan notes 2021 (the "Loan Notes") from 31 October 2021 to 31 October 2022 (the "Extension").


The Loan Notes had a conversion price of approximately £0.371 per share and a 10% interest rate per annum which increased to 12% per annum effective 30 April 2020.  The Extension, which required a simple 50.1% majority to approve, has been approved on the same terms as those currently applicable to the Loan Notes but with an adjusted conversion price of £0.302 per share.  A single interest payment will be due on the extended final repayment date of 31 October 2022 provided that no conversion or early repayment has occurred. The Loan Notes can be repaid early in cash upon 10 business days' notice.


As of 31 October 2021, the principal amount outstanding of the Loan Notes would have been US$ 19.68 million plus accrued interest of US$ 6.68 million. 


If all the Loan Notes convert on their amended terms, 70,221,958 ordinary shares of US$0.01 each ("Ordinary Shares") will fall due to be issued to Loan Note holders assuming full conversion of principal and interest to the extended maturity date of 31 October 2022.


As previously stated Labro Investments Limited ("Labro"), a substantial shareholder in the Company the majority of shares in which Martin Andersson (the executive chairman of Chaarat) is interested, holds US$ 1.0 million of Loan Notes excluding accrued interest (the "Labro Notes").  If all the Labro Notes convert on their amended terms, 3,579,088 Ordinary Shares will fall due to be issued to Labro assuming full conversion of principal and interest to the extended maturity date of 31 October 2022.


An update on the broader financing considerations of the Company will be provided with the Q3 2021 operational update.


Chris Eger, Chief Financial Officer of Chaarat, said:


"Chaarat had good discussions with the note holders and is grateful for the continued support with a solution beneficial to all parties. The maturity extension allows the Company to continue its organic and other growth plans."



The original conversion price was, for each US$250,000 of Loan Notes, 527,871 Ordinary Shares (and pro rata for any amounts less than US$250,000).  This equated to £0.37 per share at the then prevailing exchange rate of US$1.28 / £1.

The amended conversion price agreed for the purposes of the Extension is, for each US$250,000 of Loan Notes, 611,290 Ordinary Shares (and pro rata for any amounts less than US$250,000).  This equates to £0.30 per share at an exchange rate of US$1.36 / £1.





Chaarat Gold Holdings Limited

+44 (0)20 7499 2612

Patrick Henze (VP Corporate Development & IR)

[email protected]

Canaccord Genuity Limited (NOMAD and Joint Broker)

+ 44 (0)20 7523 8000

Henry Fitzgerald-O'Connor

James Asensio

finnCap Limited (Joint Broker)

+44 (0)20 7220 0500

Christopher Raggett

Panmure Gordon (UK) Limited (Joint Broker)

+44 (0)20 7886 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 with an initial focus on the FSU 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 .




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