Chaarat Gold could soon get Chinese investment after a potential deal was given the thumbs up by authorities in the country.
Chaarat, a gold explorer based in the Kyrgyz Republic, said Shandong Gold Mineral Resources had secured regulatory approval for investing from the Development Commission of China (NDRC).
Approval from the NDRC is required before any Chinese firm can make an investment in a foreign company.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Chaarat said discussions with Shangdong, the third largest gold producer in China, could continue but warned no agreement had been made and there was no certainty a deal would be done.
The business also announced a deal between China Gold International Resources, the largest gold producer in China, and its 70%-owned subsidiary Kichi Chaarat.
The venture will see joint construction and sharing of the cost of a power line from Chatkal, the entry point to Chaarat, to the national grid of the Kyrgyz Republic.
When construction and commissioning of the power line in complete, the company said the projected cash cost of gold production at the site was expected to fall considerably.
In addition, the need to transport large quantities of diesel by road would be eliminated, enabling a more rapid development of the deposit, it added.
The firm's shares rose 5.7% following the news.
MM
-
Adidas, Nike or Jordans - could collectable trainers make you rich?The right pair of trainers can fetch six figures. Here's how you can start collecting vintage Adidas, Nike or Jordans now
-
Early bird ISA investors flock to global funds, India and the USThere’s been an increase in investors maxing out their ISA at the start of the new tax year. But where are they putting their cash and why does it make sense to be an early bird investor?
