Chaarat Gold to raise $83 mln for Kyrgyz gold project
MOSCOW. Feb 8 (Interfax) - Chaarat Gold, which has a portfolio of gold exploration assets in Kyrgyzstan, has reached agreement to raise $83.4 million with the proposed private subscription to 103,290,468 ordinary shares, the AIM-listed company said in a statement.
Most of the funds raised will be invested in the Chaarat gold deposit, which the company said contained estimated indicated and inferred JORC-compliant resources of 4.406 million oz (137 tonnes) graded at 4.2 g/t Au and a cut-off grade of 2 g/t. The reserves audit was performed by Wardell Armstrong International (WAI).
The Chaarat field is split into two zones - Kiziltash (sulfide) and Tulkubash (oxide) - situated within the Middle Tien Shan Mountains of Kyrgyzstan which form part of the Tien Shan gold belt. The company is currently in the process of compiling a pre-feasibility study on the Kiziltash project and a definitive feasibility study on the Tulkubash project.
Chaarat Gold's objective is to become a low cost gold producer targeting production of over 200,000 ounces per annum by early 2014 from the Kiziltash project with first production from the smaller Tulkubash project in mid 2012.