Chaarat says 'low valuations' in London prompted move for secondary listing

Chaarat Gold, which listed on the Alternative Investment Market, London's junior stock exchange, in November 2007, is now looking to trade shares in Toronto or Hong Kong.

Dekel Golan, the chief executive of the Kyrgyzstan-focused mining company, said: "The main reason that we are looking at other exchanges is that sentiment is different in different markets. Right now, valuations in London for miners are significantly lower than any other market."

The secondary listing is expected to take place in the final quarter of 2010. The news follows the announcement last month that Westhouse Securities and Mirabaud Securities have been appointed as joint brokers.

The company explores and develops gold mines in the Sandalash licence area in western Kyrgyzstan, the landlocked former Soviet Union state.

Chaarat shares closed at 38p on Friday, down 1.5p from the start of trading. The share price values the company at nearly £45m.