New US$10 million loan agreement

15 November 2018

Chaarat Gold Holdings Limited

("Chaarat" or the "Company")

New US$10 million loan agreement

Chaarat (AIM:CGH), the AIM-quoted exploration and development company with assets in the Kyrgyz Republic, is pleased to announce that it has entered into a loan agreement (the "Loan") with a previous note holder in the Company, to secure funding of US$10,000,000.

The loan proceeds will be applied to Chaarat's goal of building a leading emerging markets gold company with an initial focus on Central Asia and the FSU, and to support the Kapan acquisition announced on 30 October 2018. 

Artem Volynets, Chief Executive Officer of Chaarat, said: "This new financing agreement is a clear expression of confidence in Chaarat's management and growth strategy. The Loan demonstrates our ability to raise capital. It also reflects Chaarat's commitment to finance the Company's strategy while managing dilution and cost of capital through a combination of debt, hybrid and equity instruments."    

Terms of the Loan

The Loan is for the amount of US$10,000,000 and is guaranteed by the Company's subsidiary Zaav Holdings Limited. It has been financed by a previous loan note holder who is neither management nor a board member. The Loan is repayable after six months or, at the Company's option, nine months. The total interest which shall accrue on the Loan shall be a fixed amount of 6.5% of the loan amount if the Loan is repaid within six months or 9.75% of the loan amount if the Loan is repaid within nine months (in each case whether or not repaid prior to the end of such period). The Loan contains various representations, undertakings and events of default which are common for a loan of this nature.

Enquiries

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.

On 30 October 2018, Chaarat announced that it had entered into a binding sale and purchase agreement to acquire the Kapan mine in Armenia from Polymetal, for a consideration of US$55 million, subject to adjustments.

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