Chaarat Gold Holdings Ltd on Monday said the necessary approvals were unlikely to be received for a $250 million equity investment from Xiwang International Co Ltd.
However, progress continued to be made towards a completing the potential investment, the gold mining company with an operating mine in Armenia and assets in Kyrgyzstan stressed.
Chaarat said completion of the potential investment is conditional upon several conditions being met by the end of the month, including corporate and regulatory approvals.
However, given the minimum required notice periods, Chaarat said these are now unlikely to be obtained in full.
As a result, both parties are discussing a new target date to satisfy these conditions and to complete the potential investment, while the target date for all other conditions will remain July 30.
Chaarat stressed there is no guarantee at this stage that the proposed investment will be completed and that further investments will be made ‘as appropriate’.
Announced last month, Chaarat Gold said it entered into a conditional preliminary investment agreement with Xiwang. It comes in the form of a a proposed investment in new Chaarat shares at a price of 20.00 pence each.
Shares in Chaarat were flat at 8.50 pence each in London on Monday early afternoon. Across 2023 so far, they are down 30%.
If the potential investment goes ahead, Xiwang would hold around 60% Chaarat’s issued share capital.
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