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(Kitco News) - Gold miner Chaarat Gold (AIM: CGH) today announced the signing of a non-binding letter of intent and an indicative term sheet with Xiwang International for a potential equity investment of US$250 million.
In a statement, the company said that the investment would be used to develop Chaarat's organic pipeline and external growth through value-added acquisitions, adding that the investment would be in the form of a new issue of shares in Chaarat at a price of £0.20 per share resulting in Xiwang holding 60% of the shares in Chaarat.
"Chaarat and Xiwang expect to agree the terms of a preliminary investment agreement (PIA) by the end of May 2023. Upon completion of the PIA, it is the intention of the parties to enter into a formal investment agreement with completion by 30 July 2023," the company said.
Chaarat noted that conditions precedent to completing the investment would include completion of all remaining due diligence, Xiwang completing its financing, and receipt of all necessary corporate, government, and regulatory approvals.
Executive Chair Martin Andersson said, "We are pleased to have taken the discussions with Xiwang to this stage. We will now work with Xiwang towards progressing the PIA and subsequent investment and relationship agreements to support the growth objectives of Chaarat.
Xiwang is undergoing a transformational change and Chaarat is one of the potential platforms for their investment consideration and passed their initial due diligence, governance and investment criteria."
Xiwang International is an investment company incorporated in the British Virgin Islands. As part of its long-term strategic investment plan, Xiwang is looking to create a significant portfolio of mining assets and resources on a global basis.
Chaarat is a gold mining company which owns the Kapan operating mine in Armenia as well as Tulkubash and Kyzyltash gold projects in the Kyrgyz Republic.
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