Chaarat Gold Holdings Ltd. decided to raise up to US$20 million for development of the Tulkubash heap leach project, part of the Chaarat gold operations in Kyrgyzstan.
The company will issue equity at 25 British pence per share and issue notes at a conversion price of 33 pence per share.
It has received commitments of US$15 million, including participation from management and directors, according to a Dec. 18 release.
The funds will be used to accelerate detailed engineering and ongoing development to prepare for starting project construction in the third quarter of 2018.
The proceeds will also be used for ongoing exploration to further extend the heap-leachable resource base in the Tulkubash zone.
In September, Chaarat Gold received all approvals from the Kyrgyzstan government needed to develop the Tulkubash project.
