The closing date for the acquisition of the Kapan mine, in Armenia, has been extended to month-end, London-listed Chaarat reported on Wednesday.
The $55-million transaction with fellow-listed Polymetal was meant to close on January 15, but will now close on January 31, owing to the “extended winter holiday season in Armenia and Russia”.
In addition, Chaarat said it had been agreed that its subsidiary Chaarat Gold International would grant a pledge over the shares it had acquired in Kapan in favour of Polymetal, pending receipt by Polymetal of the $40-million cash payment, whereupon the pledge would be released. If payment is not completed within ten business days from the date of completion, Polymetal has the right to require the transaction to be unwound, in which case a termination fee shall be payable.