Chaarat Gold Share Discussion Threads

[crapshoot2] 05/2/2021 17:28

I was called by the chairman Wed made an insider and sounded out on any interest to participate. I was debarred from dealing until today. It was Cannacord. I still don’t yet know whether I have bought the shares.

[crapshoot2] 05/2/2021 17:27

I was called by the chairman Wed made an insider and sounded out on any interest to participate. I was debarred from dealing until today.

[2pablo] 05/2/2021 15:27

There are quite a few positives though from today’s funding and loan conversion. We’re not now paying Labro the considerable amount of $2.1m interest each year for four years.

Sounds with the debt reduction they are perhaps paving the way for another acquisition which may or may not be a good thing.

With regards Japarov who knows. He might provide stability. Artem does seem convinced he is not the same man he was when he was so nationalistic previously and surely foreign investment is essential for the country to prosper.

[casual47] 05/2/2021 14:25

It's a significant dilution, nearly factor 1.25. 26p will be the old 32p.

The really interesting/curious aspect is the $22m loan being converted after only recently having been refinanced and extended to 2024.

Can go several directions now, including providing space to absorb more debt (acquisition? Tulku financing?).

The least interesting move forward would be if the money raised will be used to replace the $19m loan notes. Amount wise it sorta corresponds: $3m this year for East Flank and a couple of million for Kyzyltash exploration would leave ~$19m. Wouldn't be totally surprised if there is some overlap and this equity raise is a way for some loan note holders to swap to a convert at 26p rather than 37p.

Geopolitically I would say things are still hairy for the time being. While the Kyrgyz president's executive order on banning foreign ownership doesn't affect existing licences it makes clear the direction of travel. Japarov wants to finalise a new mining code by June so we will soon know what further impacts there will be. I think one way or another there will need to be some involvement of the state in a project like Tulkubash. I can't see how it can be avoided, politically, as it goes against everything Japarov has argued for in the past. That doesn't mean it will be a bad thing as e.g. having the state mining company part owner of the assets could provide a degree of protection.

[2pablo] 05/2/2021 11:25

Oh excellent. Who contacted you Canaccord Genuity, finnCap or Panmure Gordon ?

Now you're not 'inside' anything else they shared with you?

[crapshoot2] 05/2/2021 10:34

It’s part of the placing

[2pablo] 05/2/2021 10:32

No 1m trade showing up, presumably being worked. Nothing on Aquis either

[crapshoot2] 05/2/2021 09:25

I am coming in for one million shares. I think the presence of some new institutional investors together with the Labro conversion is very helpful and outweighs the dilution of the 26p price, which is admittedly disappointing. The political situation seems to have settled down a bit in both countries and they reiterate the expectation of a Q4 2022 pour at Tulkubash I think once indigestion subsides this could be the beginning of a sustained advance, provided always that gold remains somewhere near these levels.

[jc2706] 05/2/2021 07:33

That was expected/unexpected.

Expected because it has been obvious for years that it would be required to advance Tulkubash.

Unexpected because I thought that, given the current political situation, it would be near impossible to get away.

I have said over the years that I support a fundraise if it progresses Tulkubash to production and saw it as inevitable but I find that I am still looking for the connection to Labro of the new and existing shareholders that have participated and/or any guarantees that have been issued. I will also believe it when the money is in the bank!

The conversion of debt by Labro is positive and, obviously, will not be an overhang.

This is good news to me but I don't expect a significant reaction given this is dilution and the company profile is so low.

[2pablo] 02/2/2021 11:50

Quite a few silly little trades going through the last week or so : five trades today making 29 share total so far !!!!!

[2pablo] 01/2/2021 12:08

These are the headlines of the foreign-mines licensing. As Artem says, existing licences to be honoured :

hxxps://www.mining-journal.com/politics/news/1403691/kyrgyzstan-reportedly-bans-new-foreign-owned-mines

[casual47] 31/1/2021 12:15

Thanks JC. Only part-timing for now, as "IRL" is still usurping my attention.

Pabs, Adriatic Metals has some serious backers, e.g. Sprott. That QRC got involved as well now makes me think that the western end of the Tethyan belt in general may become very interesting. The hiring of the new new Dusty may fit into this. Haven't looked into the value proposition of ADT so no comment from me on that but have it bookmarked ever since QRC got in.

Artem is a good salesman but despite his reassurances it's "show me the money" time, money that isn't from Labro.

[2pablo] 30/1/2021 21:17

My ADT shares are taking forever from the October completion of the takeover of TETH and I now realise I’m to receive London ADT1 shares! I wonder if AJBell are also under the same confusion as me as I’ve been asking them to get my Aussie shares!

[2pablo] 30/1/2021 17:44

Well I never, didn’t realise ADT were also listed on the London Market too, Main Market. I’m still awaiting shares in ADT as payment for my TETH and think they will be ASX listed but now I’m not sure

[2pablo] 30/1/2021 17:32

Casual, nice to see you posting agin as well.

I’ve recently become a holder in ASX ADT Adriatic as indeed they’ve taken over my Serbian TETH. Look to be doing well and a good merger

[2pablo] 30/1/2021 17:26

After that article on the former Prime Minister up on corruption charges, I asked Artem to qualify our position.

He came back with : ‘ Dear pabs,

Many thanks for your question. I want to be very clear in my response:

- we operate in full transparency and in full compliance with Kyrgyz, Armenian and international laws
- we are not connected to any politician in either country and the recent moves by KR government to prosecute some former government officials have no impact on Chaarat
- the last decree by President Japarov to ban foreign companies from mining in the country only applies to issuance of new licences and have no impact on our existing licences
- our Tulkubash project is fully permitted to start full scale construction this year and that is the plan we are working on at full speed

I hope this clarifies our position in the Kyrgyz Republic, which, in fact, has never been stronger.

Best,
Artem

[jc2706] 30/1/2021 13:38

It is common practice for new dictators, erm 'leaders' to ban foreign ownership. Then they wonder why there is no money coming into the government coffers.

I wish that governments and companies could get the balance right. If that is achieved both sides can benefit.

[jc2706] 30/1/2021 13:34

Welcome back!

[casual47] 30/1/2021 12:56

It might make sense to secure the $20m convertible loan notes against Kapan now that Labro have taken up the investor loan and brought that up to corporate level.

Some of the loan note holders will, I imagine, expect to get paid back rather than converting (at 37p) or rolling over into a new loan note.

Will be interesting to see how much will roll over, how many will convert and how much will need to be paid back.

If there will be a new issue of loan notes, what will conversion price be?

Or will they expand Kapan bank loan to e.g. $40m to get rid of loan notes altogether?

If new options are to be issued, what will the milestones be? What will the option price per share be?

[2pablo] 28/1/2021 12:08

Kumtor/Centerra news : hxxps://www.rferl.org/a/former-kyrgyz-prime-minister-abylgaziev-arrested-on-corruption-charges/31071427.html

Hope we haven't done any dirty deals? Artem, 'Who moi?'

[2pablo] 21/1/2021 11:23

Yeah that exceeding guidance for 2020 was good to see. Unlike most ‘results’; ‘updates’; ‘news’ days throughout Aim, we seem to be pretty steady not giving away very recent rises.

Strange that holding back Sales, notice all our commodity prices have risen through the year.

Reckon we’re doing the right things, making the right noises. Been a very difficult environment with Covid, War and Krygyz politics. It would have to be a crazy politician to decide nationalisation was the only way forward but I don’t think he’s that mad.

May well be a slow 2021 but getting the finance sorted with it sounds like some equity swap ala Ciftay involved in some of it, will be key. Kapan has proved itself now imo, long may it prosper

[jc2706] 21/1/2021 07:50

A positive update this morning, particularly Kapan. Guidance significantly exceeded and EBITDA rising strongly - H2 was very strong.

It is very interesting to note sales which indicated that they sold 10k geoz less than they produced. That is rather a lot.

[2pablo] 17/1/2021 12:53

wilmot - joint brokers often spell out ‘placing ahoy’ but I hope not. share price has just started to show green shoots