Funding secured for the Chatree Gold Mine
Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate or the Company”) is pleased to advise that the documentation for a secured Bridge Facility of US$15 million to support the refurbishment and restart of the Chatree Gold Mine (“Chatree”) has now been executed, and the Conditions Precedent to Initial Utilisation have been completed.
The funding is being provided by the Taurus Mining Finance Fund No.2 L.P. (the “Lender”), with the first tranche of funds of US$7.5 million due to be received by the end of this week.
The Bridge Facility will fund the following key steps at Chatree including:
- The appointment of an international engineering firm to refurbish and restart Chatree, with initial works focusing on refurbishing and recommissioning Plant #2 as a priority;
- The procurement of identified “long lead” items required to refurbish the plant;
- The appointment and mobilisation of key Chatree technical staff with the recruitment process now entering its final stages and;
- An expansion of the regional exploration program, including RC drilling of prospective near mine areas.
To ensure that Kingsgate has adequate capital to fully fund the refurbishment and restart of Chatree, the Company is also negotiating with the Lender a US$30 million Project Facility to replace the Bridge Facility at the appropriate time. The proposed Project Facility remains subject to satisfaction of further due diligence.
Ross Smyth-Kirk OAM
Kingsgate Consolidated Limited