Chaarat Gold Holdings and the Kyrgyz Government sign the stabilization regime agreement

The first stabilization regime agreement between the Government of the Kyrgyz Republic and Chaarat Gold Holdings Limited and its subsidiary Chaarat Zaav CJSC was signed on December 26, 2019.

According to the Law of the Kyrgyz Republic “On Investments”, a favorable legal regime shell be provided for an investor or invested enterprise in case of amendments and additions to the normative legal acts of the Kyrgyz Republic regulating tax and non-tax payments. That is, within ten years from the date of signing the stabilization agreement, the enterprise has the right to choose the most favorable conditions for it to pay taxes, including value added tax, but excluding other indirect taxes, and non-tax payments (excluding payments for services provided by state bodies).

At the same time, the investor is obliged to invest a cash contribution / property in the authorized capital of the invested enterprise in the amount of $20 million within five years from the date of entry into force of the agreement, as well as direct investments to carry out activities related to research, search, exploration, and development of minerals.

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Chaarat Zaav CJSC, a mining company registered in the Kyrgyz Republic, specializes in the development of the Chaarat gold deposit, the ore reserves of which are 7 million ounces of metal with a high Au content. The company management believes that within the Chaarat project, it is possible to provide long-term production capacity of 3-400 thousand ounces of metal per year.