Chaarat Gold, a company formed to prospect for gold in the western part of the Kyrgyz Republic, has floated on AIM. The initial public offering (IPO) raised £8.8 million at 60p per share, giving the company a market capitalisation of £43.1 million.

Chaarat Gold, a company formed to prospect for gold in the western part of the Kyrgyz Republic, has floated on AIM. The initial public offering (IPO) raised £8.8 million at 60p per share, giving the company a market capitalisation of £43.1 million.

The funds raised will be used primarily to develop a licence currently held by Chaarat’s wholly owned subsidiary Chaarat Zaav CJSC. This licence gives the company the right to prospect for gold and other metals in the licence area (about 600 square kilometres in size), as well as the exclusive right to apply for a mining licence.

In related news, Johannesburg-based gold miner Central Rand has floated on the main market of the London Stock Exchange. The IPO raised £75 million at 125p per share, which gives the company a market capitalisation of £308 million.

Central Rand listed simultaneously on the main board of the Johannesburg Stock Exchange.

Greg James, the company’s CEO, said the IPO had been ‘a real success’ in spite of ‘challenging market conditions’.