London’s AIM-listed gold mining company, Chaarat Gold, is actively considering various financing avenues, which may include the sale of its sole operational mine, Kapan, situated in Armenia. The Chief Executive Officer, Mike Fraser, conveyed this information on Friday.
Furthermore, the firm is engaged in ongoing discussions with investment management entity Xiwang, exploring a potential investment opportunity. The parties involved have agreed to extend the originally stipulated completion timeline by an additional four months, extending beyond the initial date of July 30.
The current negotiations with Xiwang outline a strategic capital allocation directed towards Chaarat’s Kyrgyz assets. This allocation is designed to facilitate the advancement of the Tulkubash project, which stands poised for a final investment decision contingent on the acquisition of necessary financing.
Chaarat Gold has previously disclosed the necessity for additional funding by the close of the third quarter to sustain corporate operations and to enable the progress of development activities in the Kyrgyz Republic.
With regards to the potential sale of the Kapan mine, the company has indicated that the envisioned transaction structure would likely bring about a substantial change in business, aligning with the regulations set forth by AIM.
It is important to note that at present, there exist no binding agreements concerning supplementary funding or the prospective sale of the Kapan mine.
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