Chaarat Gold:Completion of Acquisition of Kyrex Limited

Friday, 30 July 2010 00:54

Chaarat Gold Holdings Limited (AIM: CGH) announce that, further to the Company’s announcement of 15 July 2010 regarding the proposed acquisition of Kyrex Limited (“Kyrex”) (the “Offer”), all conditions relating to the Offer have now been satisfied.

The Offer comprised 54 fully paid Chaarat ordinary shares of US$0.01 each for each Kyrex share. The aggregate consideration for the whole of the issued and to be issued share capital of Kyrex comprises 11,928,222 shares (the “New Shares”), which equates to 9.73 per cent. of the Company’s issued share capital prior to the issue of the New Shares.

The New Shares will be issued under the existing power granted to the Directors to allot shares. Application has been made and it is expected that the New Shares will be admitted to trading on AIM on 28 July 2010. Following the admission of the New Shares to trading on AIM there will be 134,473,900 ordinary shares in issue.

Investment by China Nonferrous Metals International Mining Co Ltd (“CNMIM”)

Pursuant to its subscription agreement with CNMIM, Chaarat is obligated to notify CNMIM of its intention to issue new shares and CNMIM has the option to maintain its percentage holding in the Company at 19.9 per cent. of Chaarat’s issued share capital. Notice of the issue of the New Shares and also the issue of shares relating to the placing announced on 1 July 2010 (the “Placing”) was given to CNMIM.

Chaarat announce that CNMIM has confirmed to the Company that it will subscribe for such number of shares to maintain its 19.9 per cent holding. The proceeds from the subscription are estimated to be in the order of £2m which, with the proceeds of the Placing, means that the Company has raised approximately £5.85m (before expenses). The investment by CNMIM in Chaarat is subject to the necessary regulatory approvals from the Chinese government, such approvals are expected by 31 October 2010 and a further announcement regarding the issue of these shares will be made in due course.

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