Chaarat Gold Holdings (CGH) is selling its only operating mine in Armenia (Shahumyan/Kapan) for US$54.5 million to Armenian miner Gold Mining Company.

Mining.com quotes CGH CEO Mike Fraser as saying the deal represents a “a beneficial exit opportunity at a time when Kapan is facing higher costs, potential losses and further funding requirements.

The Shahumyan gold-polymetallic mine, the second largest gold mine in Armenia, is located near the town of Kapan, in the country’s southern Syunik Province.

Chaarat acquired the Kapan gold mine in 2019.

Gold Mining Company operates the Lichkvaz gold mine located some 70 kms from the Syunik town of Kapan.

Image courtesy of Chaarat Gold Holdings