Chaarat Gold signs two infrastructure contracts

19th Jul 2011 13:21

Chaarat Gold Holdings' shares soared after the gold explorer said the infrastructure development in the Chaarat project site is "progressing aggressively" and added it has obtained the permit to construct the power line.The Kyrgyz Republic-focused company has signed contracts with two contractors to upgrade the access road to move the large scale mining equipment. The company said the contractors have already started mobilisation and added the works are to start shortly.Furthermore, Chaarat Gold has signed a contract with a major Kazakh company has for the power line and the "works are to start in the near future." The contract includes the construction of a power line from the Chatkal valley to the site, a backup generating station, distribution network and all the relevant sub-stations, the company said.Also, an alternative electricity supply option has been proposed to Chaarat. If the proposal is found feasible, Chaarat said, it would reduce significantly the required investment and complexity of the second part of the power line.Shares of the AIM-listed company were 4.4% higher at 34.2p in London.AR