Chaarat Gold plans to raise $15m for Tulkubash project

Kyrgyz Republic-focussed exploration and development company Chaarat Gold announced its plans for first stage financing of the Tulkubash Heap Leach Project by raising approximately $15m by means of short-term senior secured convertible loan notes.

The AIM-traded firm said it was proposed that the loan notes be refinanced or converted in 2018 as part of the general project financing process.

It said the first stage financing of the Tulkubash Heap Leach Project was to be facilitated by raising the approximately $15m.

“[An] intensive drilling program is to be implemented to increase the heap leachable reserve base and extend life of mine,” Chaarat’s board said in a statement.

“On completion of the drilling program, [there is] potential for reduction of pre-stripping, and therefore capital expenditure, by re-design of pit and mine area.”

The company said the access road building works were also to commence.

Engineering of the completed sections of the Bankable Feasibility Study was to be concluded “in parallel” with local permitting progress.

Chaarat said the recruitment of a construction and operational team was to continue, and the bankable feasibility study and construction finance package for the enlarged project was planned to be available by the end of Q1 2018.