Chaarat Gold Noteholders Call for Transparency Amid Redemption Proposal

In a significant development for investors, a collective of holders of the Senior Secured Convertible Loan Notes due in 2028 issued by Chaarat Gold Holdings Limited has voiced its concerns regarding a recent redemption proposal. The situation arose when Chaarat Gold announced its intent to redeem these Notes by utilizing the proceeds from the sale of its stake in Zaav Holdings Ltd to SilverCorp Metals, Inc. The proposed redemption is scheduled for February 13, 2026, marking a crucial point for stakeholders involved.

The group, referred to as the 'Group', has articulated its principle support for any legitimate transaction that could lead to an expedient repayment of the Notes, alongside maximizing value for shareholders of Chaarat Gold. However, they emphasize the critical need for transparent information regarding the redemption proposal to assess its viability effectively.

To facilitate an informed evaluation, a representative of the Group has reached out to Chaarat Gold, insisting that essential information concerning the Notes be disclosed to all holders. This includes a copy of the active Notes instrument and a detailed calculation of the accrued interest on the Notes as of the proposed redemption date. The Group believes this information is vital for them to make an educated decision regarding the redemption proposal.

One of the primary points of contention has been Chaarat Gold's insistence on signing a non-disclosure agreement (NDA) prior to providing any requested information. The NDA in question includes confidentiality commitments lasting up to five years, even as the redemption is fast approaching in less than two weeks. The Group sees this requirement as unnecessary and overly restrictive, particularly when the redemption date is imminent.

Consequently, the Group has publicly requested that Chaarat Gold make the necessary information readily available to all Noteholders without the prerequisite of signing the NDA. The urgency of their request underscores the gravity of the upcoming redemption and the potential impact on their investments.

In addition to the basic information requested, the Group has urged Chaarat Gold to provide a standard NDA template that any interested holders can sign, ensuring all members agree on the same terms if they wish to seek further information.

To navigate this complex situation, the Group has enlisted the services of Cleary Gottlieb Steen & Hamilton LLP, a renowned law firm, for legal guidance and to assist with communications concerning the matter. They have opened their lines of communication for any Noteholders wishing to voice their concerns or pose questions.

The push for clarity from Chaarat Gold reveals the intricacies of financial transactions within the mining and extraction industries, especially around dealings with significant equity stakeholders. The outcomes of this redemption proposal and subsequent negotiations may have broader implications for investor confidence in Chaarat Gold Holdings and its operational strategies moving forward. Transparency in these dealings may not only benefit current investors but also potentially attract further investment in the company’s future initiatives.

As the February 13 deadline approaches, all eyes will be on Chaarat Gold to see how they respond to the demands of their Noteholders and what this situation ultimately means for the company's financial health and shareholder relations.