Shares in Chaarat Gold Holdings rose 17% after the company said its subsidiary Chaarat Zaav has signed a $82.8 million construction deal for its Tulkubash gold project in Kyrgyzstan.
At 0950 GMT, shares were up 0.70 pence at 4.80 pence.
The gold-mining company said Wednesday that its subsidiary has signed an engineering, procurement and construction deal with the local venture of Chinese state-owned company Power China under which it will oversee the design and construction of the Tulkubash project.
“This is a key contract that fixes the majority of the project cost and materially de-risks the delivery of the Project,” Chief Financial Officer David Mackenzie said.
Capital development costs are now expected to be $104.2 million, down by $11.2 million from the original forecast in the definitive feasibility study.
Given the reduction, Chaarat Gold will update the market shortly with revised estimates on the projects economics, it said.
Source: Market Watch