Condolences – King Bhumibol Adulyadej of Thailand
Condolences – King Bhumibol Adulyadej of Thailand
It is with great sadness that King Bhumibol Adulyadej of Thailand (Also known as King Bhumibol the Great, and King Rama IX as the ninth monarch of the Chakri Dynasty) passed away at the age of 88, on 13 October 2016, after a long illness. A year-long period of mourning was subsequently announced, and a Royal Cremation Ceremony will take place over a period of five days at the end of October 2017. The cremation will be held at the public square, Sanam Luang, on 26 October 2017.
Following cremation the King’s ashes will be taken to the Grand Palace and will be enshrined at one of the palace’s Buddhist temples. The late King Bhumibol is remembered as a good friend of Australia and will be greatly missed. The coronation of Thailand’s new King Maha Vajiralongkorn (King Rama X) is likely to take place at the end of this year, and both Kingsgate and Akara Resources wish him a long and peaceful reign.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
Appendix 3C – Announcement of buy-back
Announcement of buy-back
The Board of the Company has for some time been concerned that the price of the Company’s shares on the stock market does not properly reflect the value of the Company’s assets. In accordance, we are pleased to announce a Share Buy-Back Scheme of up to 10% of the Company’s shares which the Company believes should increase the net asset backing per share, therefore providing a benefit to shareholders. Bell Potter Securities has been appointed to conduct the buy-back.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
Action Against Political Risk Insurers
Action Against Political Risk Insurers
Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate” or the “Company”) advises that it has today decided to commence proceedings in the NSW Supreme Court against Zurich Australia Insurance Limited, and other named insurers under a Political Risk Insurance Policy held by the Company on 10 May 2016, when the Government of Thailand expropriated the Chatree Gold Mine.
The Policy, which includes confidentiality provisions, has a maximum limit of liability of USD 200 million and provides coverage, amongst other things, for Expropriatory Acts which are in violation of the Thailand-Australia Free Trade Agreement.
The Company made a claim under the Policy, but coverage was denied. Kingsgate will endeavour to have this claim dealt with by the Court as quickly as possible. While the outcome of the proceedings cannot be guaranteed, the Board considers that the terms of the Policy respond to the actions taken by the Government of Thailand against the Company in 2016. The Company has appointed leading international law firm Clifford Chance to represent it, and Dr Andrew Bell S.C. as Senior Counsel on the matter.
Share Buy-Back
The Board of the Company has for some time been concerned that the price of the Company’s shares on the stock market does not properly reflect the value of the Company’s assets. In accordance, we are pleased to announce a Share Buy-Back Scheme of up to 10% of the Company’s shares which the Company believes should increase the net asset backing per share, therefore providing a benefit to shareholders. Bell Potter Securities has been appointed to conduct the buy-back.
Nueva Esperanza Update
The Feasibility Study and permitting at Kingsgate’s wholly owned Nueva Esperanza Project in Chile is continuing. The Chilean Environmental Authority has recently requested that the Company submit an Environmental Impact Assessment (“EIA”) instead of the previously agreed Environmental Impact Statement (“DIA”). As the majority of the work necessary for that submission has already been completed, it is expected that this will be submitted by the end of December 2017.
It has been apparent for some time that Nueva Esperanza is one of the most attractive new mining projects coming on stream in South America. So much so, that the Company has been inundated with expressions of interest from prospective investors, other mining companies, private equity funds and potential financiers to participate in some form in the exploitation of the Nueva Esperanza resources.
Consequently, Kingsgate is to embark on a comprehensive review of all possible options for the prospective financing of Nueva Esperanza. All options are on the table, including joint venture, full or partial sale, the hiving off of a separate company and all debt and debt/equity proposals. While everything will be considered, the major criteria will be the overall contribution to, maximisation of, and enhancement of shareholder value.
As previously reported in the Director’s Report in the 2017 Financial Statements released to the market on 31 August 2017, the Company has organised as a back-up if needed, an AUD 15 million Standby Loan Facility with Investec Australia Finance Pty Limited.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited
Update on Claim against Kingdom of Thailand
Update on Claim against Kingdom of Thailand
Representatives of Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate” or the “Company”) have met with representatives of the Royal Thai Government to discuss a possible settlement of the Company’s claims against the Kingdom of Thailand under the Australia-Thailand Free Trade Agreement (“TAFTA”).
Shortly before the meeting, the Company was informed that the Thai Government had lifted the “temporary suspension” of the Chatree Mine, which is operated by the Company’s subsidiary, Akara Resources Public Company Limited (“Akara”). Further, Kingsgate was advised that Akara’s application for renewal of its Metallurgical Processing Licence, which expired on 31 December 2016, could now be processed.
However, it subsequently became clear that the Thai Government would not be offering any monetary compensation for the substantial losses that Kingsgate has already suffered as a result of the unlawful closure and expropriation of the Chatree Mine, nor for the substantial expenses that would be incurred in connection with restarting operations at Chatree (if an appropriate framework for doing so was able to be agreed with the Thai Government).
Nevertheless, Kingsgate was informed that the Thai Government may be willing to provide other meaningful benefits in consideration of the shut-down of the Chatree Mine.
In light of the foregoing, the Kingsgate board has determined that it is in the interests of the Company to further explore this matter, together with a number of other unresolved issues.
Accordingly, Kingsgate has reserved its legal position under TAFTA and allowed a further limited period of dialogue with the Thai Government.
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited