Chaarat secures a further $1m funding to build EM gold company

Chaarat Gold has secured a further $1m in funding from two investors to help build an emerging markets gold company.

The AIM-listed exploration and development company with assets in the Kyrgyz Republic has entered into agreements with two investors for the subscription and issue of secured convertible notes 2021 for $600,000 and $400,000 respectively.

Chaarat said the notes have been issued on the same terms as the 2021 notes issued back in September 2018 as first announced on 28 August.

"The $1m 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," the group said.

Chaarat agreed last month to buy the Kapan gold mine in Armenia from Polymetal in a $55m cash deal. The company said the acquisition was an important step in achieving its goal of building a leading EM gold company.