Challenger Gold Mine Sale Agreement Completed

Experienced Pacific Rim gold producer, Kingsgate Consolidated Limited (ASX:KCN) is pleased to announce that the Sale Agreement to sell its 100% owned Challenger Gold Mine in South Australia to a 50/50 Joint Venture between Diversified Minerals Pty Ltd (a 100% owned associate of the PYBAR Group) and WPG Resources Limited has been completed.

The Agreement allows for a management hand over to take place on 15 March 2016.

This is a modest extension to the previously announced hand over date of the end of February 2016, and will allow for an orderly completion of all site activities by Kingsgate, and a smooth transition to the new owners.

Kingsgate Chief Executive Officer, Mr Greg Foulis said “The sale of Challenger is a strategic step and allows Kingsgate to focus on core assets, namely the Chatree Operation in Thailand and the Nueva Esperanza Project in Chile.”

Kingsgate maintains previous guidance for Challenger with attributable production of approximately 10,000 ounces of gold for the March 2016 quarter.

Greg Foulis
Chief Executive Officer