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For the period ending 31 March 2018
- Work continues on the Feasibility Study for the Nueva Esperanza Project, and as it enters its final stages, it remains on schedule to be completed in the first half of calendar 2018.
- Work also continues on the Environmental Impact Assessment (“EIA”) for Nueva Esperanza, and following the Chilean regulatory agencies request to better outline measures to ameliorate the impact of noise and dust on flora and fauna in the project footprint, it remains on schedule to be submitted in the first half of calendar 2018.
Political Risk Insurance (“PRI”) Claim
- In October 2017, Kingsgate commenced proceedings in the New South Wales Supreme Court against Zurich Insurance Australia Ltd, and other named insurers, under a Political Risk Insurance Policy (with a maximum liability of US$200 million) that was held by the Company when the Thai Government expropriated the Chatree Gold Mine in May 2016.
- On 27th March 2018, Kingsgate engaged in the confidential Court-ordered mediation of its claim against Zurich Australia Limited and other named insurers for recovery under its Political Risk Insurance Policy.
- The dispute was not settled during the course of the mediation.
- Kingsgate remains open to achieving a settlement, but in the meantime will continue to prosecute its claim against the insurers in the Supreme Court of New South Wales. Following an initial directions hearing a further directions hearing is scheduled for 1st June 2018, where the trial dates should be determined.
Australia-Thailand Free Trade Agreement (“TAFTA”) Claim
- The Arbitral Panel which will determine the TAFTA Claim has now been constituted.
- The Tribunal has adopted a Procedural Calendar which provides that the merits of the TAFTA Claim will be heard on the 18th November to the 29th November 2019. However, the Tribunal has also ordered that the proceedings are to be kept confidential, except where disclosure is required to fulfil a legal duty.
- Kingsgate remains committed to seeking a settlement of the matter with the Thai Government.
- Cash at 31st March 2018 was A$3.5 million.
- There was no corporate debt at 31st March 2018.