Aim-quoted Chaarat has entered into a new loan agreement for $10-million, the company announced on Thursday.
The proceeds would be applied to Chaarat's goal of building a leading emerging markets gold company with an initial focus on Central Asia and the former Soviet Union, as well as to support the recent Kapan acquisition.
"This new financing agreement is a clear expression of confidence in Chaarat's management and growth strategy. The loan demonstrates our ability to raise capital. It also reflects Chaarat's commitment to finance the company's strategy while managing dilution and cost of capital through a combination of debt, hybrid and equity instruments," commented Chaarat CEO Artem Volynets.
The loan is repayable after six months or, at the company's option, nine months. The total interest is fixed at 6.5% if the loan is repaid within six months, or 9.75% of the loan amount if the loan is repaid within nine months.
Chaarat on October 30 announced the $55-million acquisition of the Kapan polymetallic mine, in Armenia, from Polymetal International.