Chaarat Gold’s share price fell sharply following its readmission to London’s Aim market on Friday, after an eight-month suspension under the exchange’s reverse takeover rules.
The company’s ordinary shares resumed trading at 11:30 London time, and fell 16% to 20.25p a share just before midday.
Since its suspension on April 24, Chaarat has been transformed with a new board and management, while executing its new strategy with the closing of its first major acquisition expected soon.
The company is buying the Kapan polymetallic mine from fellow-listed Polymetal for $55-million. Shareholders will vote on the acquisition at a general meeting on December 31, in London.
Chaarat reported that it had secured improved terms for the acquisition, which would strengthen its financial position. Polymetal has agreed to accept $10-million of the $55-million total consideration in convertible notes of the company, rather than $5-million as previously announced.
The change is conditional on closing the Kapan acquisition by no later than January 15.
In addition, Chaarat announced several board changes and executive appointments, including the appointment of Hussein Barma as an independent nonexecutive director. He has significant FTSE senior executive experience, having spent 16 years at Antofagasta between 1998 and 2014 where he held the position of CFO.
Gordon Wylie, already a board member and a former senior executive at AngloGold Ashanti, has been appointed as deputy chairperson and senior independent director of the company.
Dorian (Dusty) Nicol, currently technical director and head of exploration at Chaarat, is stepping down from the board. He will join the executive team as senior VP for exploration with immediate effect. Richard Rae, current senior independent non-executive director and the company’s longest-serving board member, has resigned as a non-executive director.
Sergei Zhukov will join the company as head of legal and company secretary. He was previously responsible for legal and compliance matters at the Moscow subsidiary of Credit Suisse covering operations in Russia, Ukraine and Kazakhstan.
“I am pleased to welcome Hussein to the Chaarat board. As I have stated in the past, a key priority at this important time for the company has been to add independent non-executive directors with significant mining experience and track-record. Hussein’s appointment strengthens Chaarat’s expertise in compliance, audit and governance, which are essential for our long-term plans to create value for current and future investors. Our intention is to appoint another independent non-executive director in due course,” said Chaarat executive chairperson Martin Andersson.
He also thanked Rue and Nicol for their contributions to the board.by