Chaarat Gold Holdings Ltd. unveiled financing and construction delays at its Tulkubash project in Kyrgyzstan.
The dispute between Canada’s Centerra and Kyrgyzstan over the Kumtor mine has had a significant impact on the Tulkubash project, pushing out the debt-financing timeline for the project to the second half of 2022. The project’s first gold output has also been further delayed – from 2023 to 2024.
“Construction progress at Tulkubash was negatively impacted by the delay in our debt financing efforts. The Kumtor / Centerra situation led to cautiousness in the market and until this issue is resolved, funding remains a challenge. We expect the situation will be resolved shortly and investor confidence will be re-established. The emphasis for 2022 will be to conclude the debt financing for Tulkubash to achieve our first gold pour in 2024 target but also to progress work on Kyzyltash with a processing route decision in the beginning of 2023 to create substantial long-term value for Chaarat shareholders,” Martin Andersson, Chaarat Gold Holdings Executive Chairman, commented.
The company, which once tried and failed to buy Centerra’s Kumtor gold operation in Kyrgyzstan, said it hoped to close debt financing for Tulkubash in the second half of the year.
Chaarat, which has an operating mine in Armenia and assets at various stages of development in the Kyrgyz Republic, reported production of 63,000 gold equivalent ounces last year, including 14,000 ounces from third-party ore output. The figure beat its 2021 guidance of 57,000 ounces.
This year, it expects to produce between 50,000 and 53,000 ounces from its own ore and an additional 6,000 to 9,000 ounces from third-party ore. (24.kg/Ukrainian metal)