Wednesday, April 18, 2012

Chaarat Gold seeks talks with Kyrgyz government to shield against tax adjustments

Gold exploration company Chaarat Gold Holdings Ltd said it plans to enter into talks with the newly formed government in the Kyrgyz republic to seek to safeguard itself from what it considers to be probably adjustments to taxation, ownership structure and royalties.Stone Crusher

"In order to mitigate any uncertainty concerning the feasible impact on the phased improvement from the Chaarat Project, the enterprise has decided to enter into direct negotiations using the government," it stated.

"The aim of those is always to secure long-term stability for the Chaarat Project by the improvement of a mutually agreed Investment Agreement, containing a "stabilisation clause", guarding the corporation from alterations to taxation, ownership structure and royalties. "

The organization, which said the government had confirmed its assistance of this method, will suspend additional capital investment actions pending the negotiations. Stone Crusher Machine

Chaarat also stated the implementation from the Tulkubash Project will take spot a couple of months later than originally planned, even though gold production will still be achieved in 2013.

A 2011 prefeasibility study for Chaarat estimated that the project could help production of much more than 200,000oz/y.