Chaarat Gold shares plummet as new chairman is announced

Kyrgyz Republic-focused exploration and development company Chaarat Gold announced its intention to appoint a new non-executive chairman and published its unaudited results for the six months to 30 June on Tuesday.

The AIM-traded firm’s largest shareholder, Martin Andersson, affirmed his support for Chaarat, the board said, by agreeing to join as non-executive chairman.

In the interim statement, the board said that during the period Chaarat realised $1.2m from the sale of fixed assets and reduced headcount to a permanent staff of 27, supplemented by approximately 70 temporary staff during the season, most of whom are based on site.

As at 30 June, the company had cash and cash equivalents of $2.06m.

The board said it will be working with its largest shareholder to review options for additional funding in light of a renewed production strategy.

It added that it is also taking the opportunity of the renewed focus on production to align the interests of the management with shareholders by cancelling all existing share options held by directors and certain key members of staff in Bishkek, “which are significantly out of the money”.

New options will be issued at a price to be determined by the board in due course.

“I am delighted to welcome our new chairman and director to the board at this pivotal time in the Chaarat story and look forward to working with them,” said CEO Dekel Golan.

“The whole board is hugely appreciative of the patience and support shown by our loyal shareholders.

“I know it may have seemed to them that nothing was happening at the Chaarat Project but, as we have now demonstrated, we have implemented concrete plans to achieve production in the near future.”

At 1448 BST, shares in Chaarat Gold were down 20.60% at 5.8p.