Chaarat Gold Ltd (LON:CGH) has announced that the first phase of the fundraise announced on August 28 has now successfully closed as anticipated.
The AIM-listed exploration and development company with assets in the Kyrgyz Republic said the second phase of the fundraise, also announced on August 28, is ongoing and is expected to close by the end of September/early October 2018.
At the end of last month, Chaarat announced that it had received commitments for approximately US$17mln in the first phase of up to US$100mln of a convertible debt placement with existing convertible investors, as well as select new investors.
The group added that, following positive feedback from potential investors, Chaarat will amend the interest rate and Payment-In-Kind (PIK) terms of the convertible notes.
Under the previous terms, interest on the notes would accrue at 10% per year for the first 18 months and then at 12% per year thereafter and be in PIK form, where a single interest payment is due on the final repayment date of 31 October, provided that no conversion has occurred.
The group said this shall be replaced with a combined interest rate made up of a cash coupon of 6% payable semi-annually and a 4% interest rate per year PIK which increases to 6% per year for the last 18 months of the term of the 2021 notes, again provided that no conversion has occurred.
The company also said it intends to raise additional growth capital in a second fundraising round and is targeting a further closing in late September 2018.
In a separate announcement, Chaarat also announced the appointment of Robert Edwards as an independent non-executive director with effect from today.