- Gold mining company Chaarat Gold said Turkish miner Ciftay agreed to form a joint venture to invest $31.5m for a 12.5% stake in the company's Tulkubash and Kyzyltash assets.

The agreement valued the two assets at $252m and Ciftay's investment provided a 'significant' amount of the required capital to fund construction of the Tulkubash project, the company said.

The total capital expenditure for the project estimated between US$120 and $130m, with Chaarat confirming it would make up the capital required for the remaining capital expenditure by raising funds through debt.

Chaarat said it was in the process of securing the remaining project financing with by the third quarter of 2019, and reaffirmed Tulkubash first gold production remained on schedule for 2021.

An updated feasibility study for Tulkubash would be published in second quarter of 2019, the company said.

'Çiftay's investment represents a significant milestone for the funding of Tulkubash and clearly demonstrates the Company's inherent value,' said Martin Andersson, Executive Chairman of Chaarat.

At 9:24am: [LON:CGH] Chaarat Gold Holdings Ltd share price was +0.8p at 25.15p

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