Chaarat Gold Holdings provides update on its acquisition proposal

Chaarat Gold Holdings Limited, the AIM-listed exploration company registered in the British Virgin Islands, made the proposal in relation to the acquisition of the Kumtor mine from Centerra Gold Inc. The mine is valued by the previous owner at US$800mln. It is proposed that the consideration will be funded by US$400mln in cash from Chaarat. Also, it is proposed that subject to the Kyrgyz government’s approval US$400mln of Centerra shares currently held by Kyrgyzaltyn will be transferred to Centerra and cancelled in exchange for 50 per cent of direct preferred interest in the Kumtor mine.

As a result of the transaction, the BVI holding will own all of the common equity of Kumtor, and control over management and operations of the mine. Kyrgyzaltyn will own all of the preferred equity of Kumtor, and be entitled to 50 per cent of the economic benefits of the mine. Chaarat will fund the cash component of the offer through a mixture of debt and equity, backed by two major international financial institutions.

There is no certainty at the moment about the completion of this acquisition, as Chaarat has yet to receive an engagement with respect to its proposal.

Chaarat temporarily suspends AIM trading in connection with acquisition proposal

Chaarat Gold Holdings Limited, the BVI-incorporated holding company of the Chaarat Group, which is focused on gold mining and exploration in the Kyrgyz Republic, has temporarily suspended trading of its ordinary shares on AIM from 24 April 2018. This was done in connection with the proposal that Chaarat has made in relation to the potential acquisition of the Kumtor mine from Centerra Gold Inc. 

The proposed acquisition due to its size would be a reverse takeover. For this reason trading in Chaarat’s ordinary shares was suspended in accordance with the AIM Rules, and will remain suspended pending the publication on the required AIM Admission Document. At this stage, there is no certainty that the proposed acquisition will be completed, and Chaarat will provide updates in respect of further developments.