Chaarat Gold Holdings Ltd. yesterday confirmed that it is negotiating to buy Lydian Armenia CJSC, the company that operates the Amulsar gold mine in Armenia.

In a statement published on the London Stock Exchange website, Chaarat writes:

Chaarat (AIM: CGH), the AIM-quoted gold mining company with assets in the Kyrgyz Republic and Armenia, notes recent media speculation and confirms that it is in discussions regarding the potential acquisition (the "Acquisition") of Lydian Armenia CJSC (the "Target") from Lydian Canada Ventures Corporation.

The proposed Acquisition would constitute a Reverse Takeover as defined under the AIM Rules, due (among other things) to the size of the Acquisition. Accordingly, trading in Chaarat's shares will be suspended with immediate effect pending the publication of the required AIM Admission Document or an announcement that the potential Acquisition is not proceeding.

There is no certainty at this stage, that the proposed Acquisition will be completed.  A further announcement will be made when appropriate.

Chaarat owns the Kapan mine in Armenia and the Tulkubash and Kyzyltash Gold Projects in the Kyrgyz Republic.

Lydian Armenia is a 100% subsidiary of Lydian Canada Ventures owned by the US firm, Orion Mine Finance and Canadian firm, Osisko Gold Royalties, who both invest in mining and mineral sectors.    

The Armenian government recently extended mining rights to Lydian Armenia at the controversial Amulsar gold mine site for another three years, until 2039, without a new environmental impact assessment.