7. Contingent Liabilities
Cross guarantees have been given by Kingsgate Consolidated Limited’s controlled entities to
participating banks in the revolving credit facility as part of the security package.
The guarantees may give rise to liabilities in the parent entity if the controlled entities do not meet their
obligations under the terms of the loans subject to the guarantees. No material losses are anticipated
in respect of the above contingent liabilities.
(i) Laguna Resources NL
On 25 October 2010 Kingsgate Consolidated Limited announced that it had signed a Bid
Implementation Agreement with Laguna Resources NL pursuant to which Kingsgate will make an
unconditional off-market takeover bid to acquire all of the issued and outstanding shares in Laguna.
Kingsgate Bidder's Statement was lodged with the ASIC and served on Laguna Resources NL on 30
On 20 December 2010 Kingsgate Consolidated Limited acquired control over Laguna Resources NL
by acquiring an interest in more than 50% Laguna issued shares.
On 31 December 2010 Kingsgate Consolidated Limited had acquired an interest in 59.98% of Laguna.