StockMarketWire.com - Explorer and developer Chaarat said Tuesday it had completed the first phase of its debt fundraise of up to US$100m with existing and new investors. The company also announced it had signed an agreement to acquired a medium-sized polymetallic asset in the Commonwealth of Independent States for US$75m.

The fundraise included the issue of secured convertible notes 2021 with a conversion price of £0.37 a share and a 10% interest rate a year, which would increase to 12% a year for the last 18 months, Chaarat said.

The first round of fundraising is expected to close in approximately two weeks, or sooner, and Chaarat is targeting a further closing in late September 2018, the company said.

The first round of the fundraise to refinance the existing bonds had resulted in irrevocable commitments totalling US$26m from holders of existing notes and a new investors, the company added.

The gross proceeds of up to US$100m from the fundraise would be used to fund the acquisition, Tulkuash development, refinance debt and for working capital purposes.

Chaarat's recently acquired medium-sized polymetallic asset is estimated to grow production by nearly 25% a year in both 2018 and 2019, following significant investment in the asset over the last two years. The acquisition is expected to be completed in early November 2018. 'The first asset we are acquiring will be an excellent addition to Chaarat's portfolio and accelerates our strategic aim of building a leading emerging markets gold company,' said Artem Volynets, Chief Executive Officer of Chaarat. 'It turns the Company cashflow-generative in a single step, and demonstrates Chaarat Gold's ability to execute deals quickly, diligently and on accretive terms.'

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