BVI-incorporated mining company Chaarat Gold Holdings Limited proposed to raise Capital up to US$11mln, through a Convertible Bond issue of US$10mln and placing of ordinary shares of US$1mln, for the issue price of 30p. The new investor provided secured commitment to subscribe for US$10 mln , while the Board and senior management of the company are interested to participate in the Placing for approximately US$1mln.
The fund raising in the amount of US$11 mln completes the short-term funding plans of Chaarat Gold. To facilitate the introduction of long-term investing partners, the Board of the BVI company will consider additional subscriptions from current shareholders and new investors totaling up to US$5 mln. General Meeting for shareholders is expected to be held on or about 26 April 2019.
The capital raising will provide Chaarat with growth capital of approximately US$41 mln, at the same time it will assist in widening company’s shareholder base, which has already risen after company’s acquisition of the Kapan mine in Armenia, which transformed the BVI company from developer to producer. One of the key strategic objectives is to minimise dilution to shareholders.