LONDON (Alliance News) – Chaarat Gold Holdings Ltd on Monday said it secured antimonopoly clearance for the Kapan acquisition from the State Commission for the Protection of Economic Competition of the Republic of Armenia.
At the end of October, the AIM-listed gold development company has agreed to buy the Kapan polymetallic mine from FTSE 250 member Polymetal International PLC for USD55 million.
In mid-December, Chaarat said Polymetal has agreed to accept USD10 million of the USD55 million in convertible notes, rather than USD5 million as originally agreed, provided the acquisition closes no later than January 15.
On Monday, Chaarat said the transaction is progressing as planned, however, due to the upcoming public holidays in Armenia and Russia, the company is in talks with Polymetal regarding the potential extension of the acquisition closing date to the end of January.
"Chaarat continues to work with Polymetal on key transitional details and is making significant progress in filling senior operational roles at the Kapan mine, identifying operational improvements and developing a detailed first 100-day plan," Chaarat said in the statement Monday.
Chaarat shares were trading 5.1% higher on Monday at 30.75 pence each. Polymetal shares were up 1.6% at 842.60p.
By Evelina Grecenko;
http://www.morningstar.co.uk/uk/news/AN_1546244965148914700/chaarat-to-extend-kapan-purchase-date-after-armenian-regulator-consent.aspx
