Precious Metals Refiner appointed to process Chatree Gold and Silver
Precious Metals Refiner appointed to process Chatree Gold and Silver
Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate or the Company”) is pleased to advise that Precious Metal Refining Company Limited, (“PMR” or “the refiner”) has been appointed to process the gold and silver ore produced at the Chatree Gold Mine (“Chatree”).
PMR’s state of the art refining facility is securely located in the Amata City Industrial Estate, Chonburi, about 40 minutes outside of Bangkok, with best in class environmental, health, and safety management.
PMR Gold and Silver Refineries are among the largest capacities in Thailand, and will easily be able to process the +100,000 ounces of gold and +1,000,000 million ounces of silver expected to be produced at Chatree on an annual basis once both processing plants are fully refurbished and restarted.
In addition, PMR is fully certified in ISO-9001, 14001, 45001 and is a member of the Responsible Jewellery Council and complies with its operating standards. PMR has the ability to process gold to a purity of 99.99%, and is among the first in Thailand to be in compliance with the strict laboratory standards being certified by the Gem and Jewellery Institute of Thailand. PMR is also an active member of the Thai Gem and Jewellery Traders Association, and the Gold Traders Association of Thailand.
The terms of the agreement are very competitive and give rise for Kingsgate to explore a range of “value adding” opportunities in the Thai domestic gold market.
Kingsgate’s Executive Chairman, Ross Smyth-Kirk, said “We are delighted to be partnering with a locally based state of the art refiner, which not only gives us a stronger local footprint and creates more jobs in Thailand, but gives us a real opportunity to create “Thai gold for the Thai people”.
Ross Smyth-Kirk OAM
Executive Chairman
Kingsgate Consolidated Limited
PDF Download
 |
Download the full announcement as a pdf by clicking on the icon |
Engineering company appointed to restart Chatree
Engineering company appointed to refurbish and restart the Chatree Gold Mine
Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate or the Company”) is pleased to advise that the scope of work for the refurbishment of Plant #2 has been finalised, and CR3 (formerly CR Asia), a leading energy engineering solutions company, has been appointed to refurbish and restart the Chatree Gold Mine (“Chatree”).
CR3 has over 30 years’ experience in providing energy engineering solutions to customers in mining, energy production, chemical processing, power, and other asset-intensive industries.
Since 1991, CR3 has supported owners and operators of these plants and facilities with a comprehensive portfolio of industrial maintenance, plant revamp, and shutdown services.
CR3 has provided significant engineering, refurbishment, and modification projects for clients in Asia, and has long-term relationships with several mining customers including:
- LXML Sepon, Laos;
- Phu Bia Mining, Laos; and
- Nui Phad Mining, Vietnam.
Mobilisation of CR3 Thailand personnel to Chatree is expected through June with work to commence in July.
In conjunction with the finalisation of the scope of work with CR3, Kingsgate can also advise that the “long lead” items required to refurbish the plant have now been ordered.
Ross Smyth-Kirk OAM
Executive Chairman
Kingsgate Consolidated Limited
PDF Download
|
Download the full announcement as a pdf by clicking on the icon |
Kingsgate announces 46% increase in Chatree Ore Reserve
Kingsgate announces 46% increase in Chatree Ore Reserve
Kingsgate Consolidated Limited (ASX: KCN) (“Kingsgate” or the “Company”) is pleased to advise that the Chatree Gold Mine (“Chatree”) Ore Reserves have increased to 1.3 million ounces of gold (JORC standard) up from 0.89 million ounces of gold which represents an increase of 46% from when they were last reported in 2016. Further, the Ore Reserve for silver has increased from 8.3 million ounces to 12.2 million ounces, a further increase of 47% since it was last reported in 2016. These updated figures indicate the potential for a mine life of at least 8 to 10 years.
These reserves have been calculated using a US$1,700 gold price and it must be stressed that this only relates to the pits totally within the current mining leases and not the broader area of influence. Significant resources are situated outside the mining leases and we will be focusing efforts on converting some of these highly prospective areas from resources to reserves as part of our strategy going forward.
The Executive Chairman of Kingsgate, Ross Smyth-Kirk, said “the increase in the Chatree Ore Reserves demonstrates a very positive and viable future for the project, and it is Kingsgate’s intent to fund a vigorous exploration program to convert further resources to reserves in other key near mine areas”.
Funding received for the Chatree Gold Mine
Funding received for the Chatree Gold Mine
Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate or the Company”) is delighted to advise that the first tranche of funds of US$7.5 million that is being provided by the Taurus Mining Finance Fund No.2 L.P. (the “Lender”), to refurbish and restart the Chatree Gold Mine has now been received. (See ASX:KCN release titled “Funding secured for the Chatree Gold Mine dated 10 May 2022).
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 by the Lender.
Ross Smyth-Kirk OAM
Executive Chairman
Kingsgate Consolidated Limited
PDF Download
|
Download the announcement as a pdf by clicking on the icon |
Funding secured for the Chatree Gold Mine
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
Executive Chairman
Kingsgate Consolidated Limited
PDF Download
|
Download the announcement as a pdf by clicking on the icon |
Funding underway for the restart of the Chatree Gold Mine
Funding underway for the restart of the Chatree Gold Mine
Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate or the Company”) is pleased to advise that it has mandated Taurus Mining Finance Fund No.2 L.P. (the “Lender”), to provide funding, and has received a credit approved term sheet for a secured Bridge Facility of US$15 million (A$20 million1) to support the refurbishment and restart of the Chatree Gold Mine.
The Bridge Facility will be available to finance:
- General working capital for the Kingsgate Group;
- Costs associated with the recommissioning of the Chatree Project including long lead items required for the mine, and costs associated with the recruitment of senior expatriate technical site personnel; and
- Chatree regional exploration programs.
Kingsgate anticipates that the first tranche of funds will be available for drawdown in April, subject to completion of certain conditions precedent including finalisation of the Lender’s due diligence and execution of legal documentation.
Whilst the full terms of the financing are confidential, the interest rate is 9% per annum with the Bridge Facility to be repaid the earlier of 12 months or refinancing.
To ensure that Kingsgate has adequate capital to fully fund the refurbishment and restart of Chatree, the Company is also concurrently negotiating a Project Facility of US$30 million (A$41 million2) with the Lender.
The Project Facility will be available to finance Kingsgate’s:
- Capital expenditures for the development and recommissioning of the Project, including capital costs, project and development expenses incurred in the design, engineering, procurement, construction, development and recommissioning of the Project;
- Fees, costs, expenses and capitalised interest due under the Bridge Facility or Project Facility;
- Working capital; and
- Repayment of the Bridge Facility.
Kingsgate can further advise that a Scoping Study has been prepared by an International engineering firm which focussed on the option of initially refurbishing and recommissioning Plant #2 as a priority.
Estimates from the study indicate that Plant #2 could be operating within 4-6 months from commencement of refurbishment. Subject to finalisation of the Project Facility, commissioning could be completed and the first gold pour achieved before the end of this calendar year.
This option initially processes ore from the Quartz Lease and low grade stockpiles to generate sufficient cash flow to fund the refurbishment of Plant #1, and to bring Chatree back up to its full operational capacity of 5 to 5.5 million tonnes per annum.
Kingsgate will be able to provide more details on the refurbishment and restart timeline as technical staff take up their duties in Thailand.
The Executive Chairman of Kingsgate, Ross Smyth-Kirk said “Attaining this finance will enable the Company to immediately start moving towards the restart of the Chatree Gold Mine as approved by the Thai Government, and it has been achieved without diluting shareholders.”
Ross Smyth-Kirk OAM
Executive Chairman
Kingsgate Consolidated Limited
Notes
|
PDF Download
|
Download the announcement as a pdf by clicking on the icon |