Gold mining company Chaarat has concluded a joint venture (JV) agreement with Turkish company Çiftay İnsaat Tahhüt ve Ticaret for Kyrgyz Republic projects.

The agreement conclusion follows the announcement made in March, when Chaarat signed a binding term sheet to enter a JV with Çiftay to collaborate on the Tulkubash and Kyzyltash projects in the Kyrgyz Republic.

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Under the $252m agreement, Çiftay will progressively invest up to $31.5m in cash for a 12.5% equity stake in these project assets.

Chaarat launched a process to raise senior debt in June and received positive interest in the form of a preliminary term sheet to provide debt funding. The company is currently working on project financing by the end of this year or early next year.

Alongside Çiftay’s investment of $110m in capital requirement, the term sheet indicates sufficient funds towards the construction of the Tulkubash project.

Chaarat executive chairman Martin Andersson said: “Tulkubash is a high-quality asset with robust economics akin to an emerging gold district with the potential to host numerous gold deposits.

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“The project is being progressively de-risked by the team, and our drilling and exploration programmes continue to yield positive results.”

The company said that construction continues at the Tulkubash project and first gold production remains on schedule for 2021.

Çiftay chairman Serkan Aydin said: “We were delighted when Chaarat offered us the opportunity to co-invest in the Tulkubash and Kyzyltash projects.

“At Çiftay, we have been involved in the mining industry for more than 50 years, developing a market-leading position in the development and operation of construction and production mines, both over and underground.”