Chaarat Gold Holdings Ltd. said March 18 that it struck a joint venture with Turkish mining contractor Ciftay Insaat Taahhut ve Ticaret A.S. to collaborate on both ore bodies of its flagship gold project, Chaarat, in northwestern Kyrgyzstan.
Ciftay will be appointed the construction and long-term mining contractor for the Tulkubash zone. It sent equipment to the site in 2018 and built a temporary construction camp over the winter.
On the basis of a US$252 million valuation of both projects, Ciftay will progressively invest US$31.5 million in return for a 12.5% equity stake in Tulkubash and Kyzyltash, Chaarat said.
Total capital expenditure for the project is expected at between US$120 million and US$130 million, the vast majority of which, after Ciftay's contribution, will be debt funded.
London-listed Chaarat is securing the remaining project financing, which is targeted to close in the third quarter.
First gold remains on schedule for 2021, according to the release.
Chaarat is set to publish an updated feasibility study for Tulkubash in the second quarter.
The company reported a 15% increase in Tulkubash's gold resources at the start of the year, taking measured and indicated resources to 42 million tonnes grading 1.2 g/t on average, classified mostly as indicated.