Chaarat Gold Holdings Ltd Rejection of a conditional cash offer & BFS update (7582M)
October 18 2016 - 2:00AM
UK Regulatory
TIDMCGH
RNS Number : 7582M
Chaarat Gold Holdings Ltd
18 October 2016
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Rejection of a conditional cash offer and update on Feasibility
Study
Road Town, Tortola, British Virgin Islands (18(th) October
2016)
Chaarat (AIM - CGH), the AIM quoted exploration and development
company with assets in the Kyrgyz Republic, is pleased to provide
the following update.
The preparation of the Bankable Feasibility Study for the
Tulkubash Heap Leach Project is progressing on schedule. Drilling
on site continues despite the recent snow falls and the first batch
of ore to be extracted for further metallurgical testing is in
transit to UK laboratories. The initial results from the
geotechnical drilling have confirmed the suitability of our
proposed layout for the Project. A visit to verify the results of
the positive evaluation of the Heap Leach Project amongst the local
communities has been successfully completed.
It is with this background of continuing progress to production
that we were pleased to receive an expression of interest in the
form of a cash offer (subject to legal and other due diligence) to
buy the Chaarat deposit. The price indicated was at a premium of
approximately 30 per cent. to the current market price of the
Company's shares. The Board is encouraged by this expression of
interest so soon after the announcement of the Company's refreshed
focus on taking the Project into production.
However, the Board is of the view the current price of Chaarat's
shares, including the premium to that price indicated in the
expression of interest, does not reflect the concrete progress the
Company is making towards crystallising the underlying value of the
Chaarat deposit.
So, after due consideration, and in line with the Company's
strategic focus on achieving production as announced on 20
September 2016, the Board has decided not to pursue this expression
of interest. The Board is primarily focused on production and,
while open to all serious expressions of interest from potential
partners, will only pursue expressions of interest which it
believes adequately reflect the true value of the Chaarat deposit,
or can meaningfully contribute to the implementation of our
strategy.
The Board remains convinced that the best and possibly only way,
under current circumstances, to crystallise a more representative
value for the Chaarat deposit is to continue to pursue the most
effective and direct route to produce gold.
Enquiries:
Chaarat Gold Holdings
Limited + 44 (0) 20 7499 2612
c/o Central Asia Services info@chaarat.com
Limited
Dekel Golan CEO
Linda Naylor FD
Numis Securities Limited +44 (0) 20 7260 1000
John Prior, Paul Gillam
(NOMAD)
James Black (Broker)
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
low cost gold producer generating significant production from the
development of the Chaarat Gold Project. Chaarat is engaged in an
active community engagement programme to optimise the value of the
Chaarat investment proposition.
Chaarat aims to create value for its shareholders, employees and
communities from its high quality gold and mineral deposits 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
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