Kyrgyz gold development company Chaarat Gold has signed an agreement to acquire the Kapan polymetallic mine in the Republic of Armenia from Russian metals mining company Polymetal International for $55 million.
Chaarat Gold has agreed to pay the consideration in cash and has an option to issue convertible notes for $5 million of the total consideration.
The transaction is expected to help Chaarat move towards its goal of becoming one of the leading gold companies in Central Asia and the former Soviet Union.
The acquisition will also help Chaarat Gold transform into a producer.