Chaarat Gold Holdings Ltd Issue of Equity (1352A)

TIDMCGH

RNS Number : 1352A

Chaarat Gold Holdings Ltd

21 December 2017

Not for release, publication or distribution to United States newswire services or for release, publication or dissemination in the United States AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES HEREIN.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this press release have not been, and will not be, registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person (as defined in Regulation S under the US Securities Act) except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws. There will be no public offering of the securities in the United States.

Chaarat Gold Holdings Limited

("Chaarat" or "the Company")

Admission of 4,611,940 Shares to trading to use 2017 authority to allot Shares

Road Town, Tortola, British Virgin Islands (21 December 2017).

As announced on 18 December 2017, Chaarat (AIM:CGH) is conducting a private placing to raise up to US$20 million. The funds will be raised through a mixture of equity (at a price of 25 pence per Chaarat ordinary share ("Share")) and short term Senior Secured Convertible Loan Notes ("Notes") with a conversion price of 33 pence per share (the "Issue") in order to optimise the development of the Tulkubash heap leach project and ensure efficient execution of the construction schedule, while also allowing for continued exploration of the oxide deposit during 2018.

As at 17 December 2017 commitments from investors and expressions of interest from directors and management had been received in respect of US$9.8 million in Shares and US$5.2 million in Notes, which at US$15 million represents 75 per cent of the total anticipated Issue. Additional commitments continue to be received from investors and the second and final tranche of Shares, as well as the issue of the Notes, is expected to be settled by 31 January 2018. A further announcement in relation to the Issue will be made at that time.

As at 20 December 2017 the Company has received settlement funds of US$1.545m representing an initial tranche of 4,611,940 Shares which was expected to be settled before the end of December 2017. As a consequence, application has been made for admission of the Shares to trading on AIM in order to use the 2017 authority to allot shares available to the Company as set out in the Company's Articles of Association (the "Authority"). Further issues of Shares forming part of the second tranche of Shares will be made under the 2018 Authority.

Admission of the 4,611,940 Shares is expected to take place on 29 December 2017.

The information contained within this announcement is deemed to constitute inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

   Chaarat Gold Holdings Limited                                             + 44 (0) 20 7499 2612 
   Martin Andersson - Chairman                                               [e-mail] 

Linda Naylor - FD/Company Secretary

Numis Securities Limited [phone]

John Prior, Paul Gillam (NOMAD)

Further information relating to the Placing

The Shares have been issued and allotted as fully paid and will rank pari passu with the existing Ordinary Shares.

Following Admission of the shares, the Company's existing issued share capital will increase from 351,865,832 Shares to 356,477,772 Shares and the total number of voting rights will be 356,477,772 (the "Total Voting Rights").

The Total Voting Rights figure may be used by shareholders as the denominator for any calculation by which they will determine whether or not they are required to notify their interests in, or a change to their interest in, the issued share capital of the Company.

NOTES TO EDITORS:

About Chaarat Gold

Chaarat Gold is an exploration and development company operating in the Kyrgyz Republic with a large, high grade resource - the Chaarat Gold Project. The Company's key objective is to become a long term, low-cost gold producer.

Chaarat aims to create value for its shareholders, employees and communities in the Kyrgyz Republic by building relationships based on trust and operating to the best environmental, social and employment standards.

Further information is available at www.chaarat.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

IOEQFLFLDLFLFBZ

(END) Dow Jones Newswires

December 21, 2017 11:25 ET (16:25 GMT)