Chaarat Gold Holdings Ltd (LON:CGH) has entered into legally binding agreements relating to the extension and refinancing of its US$19.4mln investor loan, plus US$1.1mln of accrued interest.
As part of a debt refinancing, US$13.5mln of the investor loan will be assumed and extended to 31 December 2024 at 9.5% interest by Labro Investments via a new facility.
The US$7mln remaining will continue with similar terms to the existing investor loan but with an option of being extended at Chaarat’s discretion to 31 December 2021.
However, it is Chaarat’s intention to redeem the US$7mln by year end as the company is in discussions with financing parties in negotiating term sheets in order to repay this loan.
“We appreciate the strong support from our major shareholder, Labro, and the continued support from the existing lender,” said Artem Volynets, chief executive of Chaarat.
“This refinancing and extension of the maturity of the debt is another key milestone in optimising the balance sheet of our company. It is a reflection of the progress the company has made since the original loan was granted with the transformation from an exploration to a producing company. The maturity extension provides headroom to repay this debt financing at a point in time when Chaarat has grown further organically and potentially also through M&A.”