(Alliance News) - Chaarat Gold Holdings Ltd on Friday said it had signed a memorandum of understanding with the Kyrgyz Republic's government, regarding the Tulkubash and Kyzyltash projects.
Shares in Chaarat Gold were up 9.9% at 7.20 pence each in London on Friday morning.
Gold miner Chaarat has an operating mine in Armenia and assets in Kyrgyzstan.
Under the MoU, the Kyrgyz Republic confirmed its commitment to facilitating the development of Chaarat's projects, and to "provide collaboration to increase investment into the country," the company said.
This deal also reinforces the stabilisation agreement signed between Chaarat and Kyrgyzstan in 2019. This was based on the investments law of the Kyrgyz Republic, which stimulates investment by providing investors with formal assurances on the stability of the country's tax regime.
Chaarat added that it will support the Kyrgyz Republic in "actively promoting its initiatives internationally."
Chief Financial Officer David Mackenzie said: "The company is pleased to see the continued progress being made by the Kyrgyz Republic in highlighting the country's attractiveness to international investment. The memorandum of understanding actively promotes further development of Chaarat's gold projects.
"The specific actions highlighted, with regards to facilitating the progression of Chaarat projects and reinforcing the Stabilisation Agreement, further highlights the stable fiscal and taxation conditions in country. Chaarat now looks forward to completing the financing of its Phase 1 Tulkubash project in the near term."
By Sabrina Penty, Alliance News reporter
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