Chaarat Gold Mining To Buy Kyrgyzstan Miner Kyrex

21st Jun 2010 07:44

LONDON (Dow Jones)--Kyrgyzstan-focused gold miner Chaarat Gold Holdings Ltd. (CGH.LN) Monday said it proposes buying a privately owned exploration company with four licenses in Kyrgyzstan. It wants to buy Kyrex Ltd. for 11.9 million Chaarat shares in a deal which values it at GBP4.83 million, based on Friday's closing price. Chaarat said the deal would add three promising exploration projects to its portfolio of assets: Chontash, a molybdenum, gold and copper deposit; Mironovskoye, a gold, silver and copper deposit and Kyzil Umpul, an earlier stage project with indications of gold, silver, molybdenum, lead and uranium. No significant mineral potential has yet been identified at Kyrex's fourth license, Chaarat added. Kyrex shareholders representing 58.5% of its shares have already agreed to back the deal. Shares in Chaarat tumbled recently due to investor concerns about the impact of ethnic violence in Kyrgyzstan on the company's operations, despite company reassurances it was unaffected. Despite the recent fall Chaarat's shares have more than doubled compared to year earlier levels. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires June 21, 2010 02:44 ET (06:44 GMT)