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Chaarat sign a binding term sheet with Turkish

Mining News - Published on Wed, 20 Mar 2019

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Mining Journal reported that Chaarat signed a binding term sheet with Turkish mining and mine construction contractor Çiftay ?nsaat Tahhüt ve Ticaret, which will be appointed as construction and long-term mining contractor for Tulkubash. It said definitive agreements for the JV were likely to be concluded in the June quarter.

Under the agreement, Çiftay will invest USD 31.5 million for a 12.5% equity stake in Tulkubash and Kyzyltash, which have an agreed combined valuation of USD 252 million.

Chaarat said that Çiftay's investment in Tulkubash would cover a significant amount of the project's required equity, with total capital expenditure expected to be USD 120-130 million.

Executive chairman Mr Martin Andersson said Çiftay's investment represented a significant milestone for Tulkubash's funding. He said that "This agreement illustrates our focus on shareholder value and ability to creatively fund the business on accretive terms."

To avoid dilution to Chaarat's shareholders, the remainder of the capex will be funded via debt, which the company hopes to have secured by the end of the September quarter.

Source :

Posted By : Rabi Wangkhem on Wed, 20 Mar 2019
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