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Chaarat Gold Holdings Ltd announced on Friday significant progress in securing funding to initiate production at the Tulkubash gold mine in Kyrgyzstan. The company’s shares surged 43% to 4.00 pence each in London following the announcement.

Chaarat Gold, a mining exploration and development company, has entered into a non-binding term sheet with Xiwang International Co Ltd (XWIC) for a USD 150 million funding package. This investment would grant XWIC a 60% economic interest in the Tulkubash project, while Chaarat would retain a 40% stake.

XWIC, an investment company based in the British Virgin Islands and an affiliate of Touchstone Capital Partners, aims to build a substantial portfolio of mining assets globally. This agreement represents a key step in advancing discussions between the parties and sets a clear action plan for a successful transaction.

The completion of this deal would provide full financing for the development and commencement of production at the Tulkubash gold project. It would also enable Chaarat to restructure its existing commitments and lay the groundwork for potential future joint ventures in the gold mining sector.

Chaarat continues to engage with other potential funding sources and plans to enter discussions with convertible bondholders regarding outstanding bonds due for repayment at the end of July. The Tulkubash project has an initial mine life of six years, with significant development potential from additional prospects such as Karator and Ishakuldy. The company aims to extend the total mine life beyond 15 years.