Chaarat Gold Holdings Ltd Tulkubash contracts signed (9510R)
November 01 2023 - 3:00AM
UK Regulatory
TIDMCGH
RNS Number : 9510R
Chaarat Gold Holdings Ltd
01 November 2023
1 November 2023
Chaarat Gold Holdings Limited
("Chaarat" or the "Company")
Tulkubash contracts signed
Chaarat Gold (AIM: CGH), the AIM-quoted gold mining Company with
development projects in the Kyrgyz Republic, is pleased to announce
that its wholly-owned subsidiary, Chaarat Zaav CJSC, has entered
into binding conditional agreements for the construction and
operation of its wholly owned Tulkubash Gold Project ("Tulkubash")
in the Kyrgyz Republic. Tulkubash contains resources of 1,011 Koz
(M&I and Inferred) and Kyzyltash, which is on the same license,
has unconstrained resource of 5,377Koz(1) (M&I and
Inferred).
The following conditional contracts have been signed with Power
Construction Corporation of China Limited, the Kyrgyz subsidiary of
Power Construction Corporation of China International Group Limited
("Power China") for the Tulkubash Gold Project:
-- US $82.8 million engineering, procurement, and construction ("EPC") ceiling price contract;
-- US $160.1 million for a five-year mining contract ; and
-- US $7.2 million for a five-year operation and maintenance contract.
The revised capital development costs are now expected to be US
$104.2 million, US $11.2 million lower than originally stated in
the Company's Bankable Feasibility Study (2) which was finalised in
May 2021 ("BFS"). The revised capital development cost of US $104.2
million includes the US $82.8 million EPC cost with Power China
(which includes $15.2 million in mine development costs), US $16.4
million of owners costs (project management, spares & first
fills and pre-production fuel) and US $5.0 million contingency (5%
of the total cost of the development , in recognition of the not to
exceed ceiling pricing mechanism in the EPC contract).
The Power China agreements are a critical step in the pathway
for Chaarat to secure funding , for its Tulkubash Project . All
agreements are subject to securing full project funding for
Tulkubas h and the Company continue s to advance discussions with
potential investors, including, as previously announced, Xiwang
International.
David Mackenzie, Chief Financial Officer of Chaarat, said:
"Chaarat appreciates the pace at which Power China has worked to
conclude commercial discussions , for what is another important
milestone for the Tulkubash Project. This is a key contract that
fixes the majority of the project cost and materially de-risks the
delivery of the Project. Having Power China for both construction
and operational phases is a full - service solution ensuring the
project will proceed efficiently from construction phase through
commissioning to operations. With these conditional contracts now
in place, Chaarat will be able to move expediently to construction
of its Tulkubash project as soon as the project funding has been
secured. Given the reduction in capital development costs we will
update the market shortly with revised management estimates on the
project economics. "
Power China
As one of the world's largest construction enterprises, P ower
China conducts business in more than 130 countries around the world
and has delivered a series of industry-leading and high-quality
projects over the years . In 2023, Power China ranked 105th among
the Fortune Global 500 Companies, and 32nd among the Top 500
Enterprises in China . Power China is a publicly listed entity,
with a majority owned by the Chinese State . Further information
can be found at: https://en.powerchina.cn/
(1) Per the 2022 annual report, which also includes details of
JORC compliant ore reserves at Tulkubash, and can be found on
Chaarat's website .
(2) Bankable Feasibility Study report produced by LogiProc (Pty)
Ltd and released by Chaarat in May 2021 can be found on Chaarat's
website .
Enquiries
+44 (0)20 7499
Chaarat Gold Holdings Limited 2612
Martin Andersson (Executive Chair) IR@chaarat.com
Canaccord Genuity Limited (NOMAD and + 44 (0)20 7523
Joint Broker) 8000
Henry Fitzgerald-O'Connor
James Asensio
Axis Capital Markets Limited (Joint +44 (0)20 3026
Broker) 0449
Ben Tadd
Lewis Jones
Panmure Gordon (UK) Limited (Joint + 44 (0)20 7886
Broker) 2500
John Prior
Hugh Rich
Stifel Nicolaus Europe Limited (Financial +44 (0)20 7710
Advisor) 7600
Jan-Erik Back
About Chaarat
Chaarat is an exploration and development company which owns the
Tulkubash and Kyzyltash gold projects in the Kyrgyz Republic. The
Company has a clear strategy to build a leading emerging markets
gold company through organic growth and selective M&A.
Chaarat aims to create value for its shareholders, employees and
communities from its high-quality gold and mineral deposits by
building relationships based on trust and operating to the best
environmental, social and employment standards. Further information
is available at www.chaarat.com .
ENDS
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END
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