Chaarat Gold completes first phase of $100m fundraiser

AIM-quoted exploration and development company Chaarat Gold has completed the first phase of its $100m fundraiser with existing and new investors.

Chaarat issued secured convertible notes with a conversion price of 37p per share after receiving strong support from its long-term convertible investors.

The first round of Chaarat's fundraiser was aimed at refinancing its existing bonds and has resulted in irrevocable commitments totalling $26m from holders of existing notes and "a select few new investors".

Chaarat now intends to raise additional growth capital in a second fundraising round in late September 2018 to help fund its acquisition of a medium-sized polymetallic asset in the Commonwealth of Independent States.

Artem Volynets, chief executive, said: "This first round of fundraising is a clear expression of confidence in Chaarat's management and growth strategy."

"The first asset we are acquiring will be an excellent addition to Chaarat's portfolio and accelerates our strategic aim of building a leading emerging markets gold company. It turns the company cashflow-generative in a single step, and demonstrates Chaarat Gold's ability to execute deals quickly, diligently and on accretive terms," added Volynets.

As of 0900 BST, Chaarat shares were untraded at 24.15p.