Chaarat Gold Holdings Ltd. said Sept. 27 that it has secured £4.1 million via an oversubscribed private placement of 78,840,443 shares at 5.52 pence apiece.

Labro Investments Ltd., which currently holds 25.6% of the company's issued share capital, has committed to subscribe for an additional 41,758,250 shares, following which Labro will hold 111,583,314 shares representing a 31.7% share capital.

Chaarat Gold plans to use the proceeds to complete development at its Tulkubash heap leach project, part of the Chaarat operation in the Kyrgyz Republic.

Funding will also be put toward completing a bankable definitive feasibility study for Tulkubash during the second quarter of 2017.

The placement shares are expected to start trading on the London Stock Exchange's AIM submarket by Sept. 30. Upon admission, the company's issued share capital will increase to 351,775,832 shares.