- Chaarat Gold reported wider losses as revenue was offset by higher costs.

The company also announced the conclusion and signing on 11 September 2019 of a joint venture agreement with Çiftay İnsaat Tahhüt, the Turkish mining and mine construction contractor.

Under the agreement, based on an agreed valuation of US$252m for Tulkubash and Kyzyltash, Chaarat's mining projects in the Kyrgyz Republic, Çiftay would progressively invest up to US$31.5m in cash for a corresponding 12.5% equity stake in these two project assets.

For the six-month period ended 30 June 2019, pre-tax losses widened to $12.4m from $5.1m and revenue was $31.0m.

A positive earnings (EBITDA) contribution from Kapan of $3.2m was offset by depreciation and amortisation as well as corporate and overhead costs of USD6.5m at head office and in the Kyrgyz Republic to fund the ongoing development of the group.

The increased operating loss of USD7.5m compared with USD3.7m in the first half of 2018 resulted mainly from the higher level of corporate and development activity in the company, Chaarat said.

'We look forward to the second half of the financial year, in which we expect to have bedded down our newly acquired Armenian gold mine, while further advancing our next producing asset, Tulkubash,' the company said. At 8:00am: [LON:CGH] Chaarat Gold Holdings Ltd share price was -0.3p at 27.4p

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