The undisclosed asset produced around 50,000 ounces of gold equivalent in 2017 and generated around $19 million profit before tax with gross assets of around $100 million.

Production from the asset is expected to grow by almost 25% per annum in 2018 and 2019 due to significant investment over the past two years.

Chaarat said the acquisition was part of its consolidation strategy for the regional gold sector and transformed the company from a developer onto a cash-flow generating producer.

It said due diligence on the acquisition was at "an advanced stage" with deal documents expected to be signed in late September and completion estimated for early November.

At the same time, the company said it had completed the first phase of up to $100 million of a convertible debt placement with existing and select new convertible investors.

The fundraise included the issue of convertible notes maturing in 2021 with a conversion price of 37p (US48c) per share and a 10% interest rate per annum, which would increase to 12%pa for the last 18 months.

Chaarat's shares are suspended following its stalled bid to take over Centerra's Kumtor mine. 

The cpmpany said it intended to raise additional growth capital in a second fundraising round targeted for closing in late September.

Of the fundraising, around $20 million would be used for the acquisition, which would also be funded through other debt.

The remainder of the $100 million would be divided into $40 million for the Tulkubash development, $26 million for general corporate purposes, future acquisitions and reserves, and the remainder for refinancing existing notes.  

Chaarat also gave an update on its proposed acquisition of Kumtor, noting that it was still interested, but had yet to receive any engagement from Centerra's board and management team concerning the proposal.