Chatree Mine December 2016 Production Update
Chatree Gold Mine Production Update for December 2016
Kingsgate Consolidated (ASX:KCN) (“Kingsgate” or the “Company”) is pleased to provide an update on the Chatree Gold Mine’s (“Chatree”) December 2016 production, following another strong performance.
Chatree operating result for the month of December 2016 is as follows:
- 19,377 ounces of gold produced;
- 17,778 ounces of gold poured; and
- 19,040 ounces of gold sold.
As previously reported on 28 December 2016 Chatree is now debt free, and in accordance with the Thai Government’s decision to cease all gold mining generally by the end of 2016, it was placed on to Care and Maintenance effective 1 January 2017.
Kingsgate’s remaining corporate bank debt facility of A$5 million, is scheduled for repayment at the end of January 2017.
Kingsgate estimates that by the end of January 2017 following the repayment of the corporate debt facility of A$5 million, Group cash will be approximately A$38 million.
Greg Foulis
Chief Executive Officer
Kingsgate Consolidated Limited
Closure of Chatree Gold Mine
Closure of Chatree Gold Mine
Kingsgate Consolidated’s (ASX:KCN) (“Kingsgate” or the “Company”) Thai controlled subsidiary, Akara Resources Public Company Limited (“Akara”), ceased production at the Chatree Gold Mine on 31 December 2016, in compliance with the requirements of the Thai Government. Akara is proceeding with rehabilitation of the site.
The Company has noted recent press reports of comments by the Prime Minister of Thailand that the Company should not sue the Government over the closure. The Company has been unable to verify these reports, and has had no contact from the Government with respect to their contents.
The meeting proposed by the Deputy Prime Minister of Thailand did not proceed, and the Company has written to the Prime Minister seeking a meeting in early January.
Kingsgate continues to pursue remedies for the premature closure of the Chatree Gold Mine.
Greg Foulis
Chief Executive Officer
Kingsgate Consolidated Limited
Chatree Gold Mine Now Debt Free
Chatree Gold Mine Now Debt Free
Kingsgate Consolidated (ASX:KCN) (“Kingsgate” or the “Company”) is very pleased to announce that the Chatree Gold Mine (“Chatree”) is now debt free.
The final payment against the Akara Loan Facility of US$6.3 million was made on 23 December 2016, making the Chatree plant and landholdings completely unencumbered.
The Kingsgate Board and Management Team would like to congratulate the hard working staff at Chatree for achieving such a great financial result, which comes after an extremely difficult year that will see the mine move on to Care and Maintenance from 1 January 2017.
Kingsgate’s Chief Executive Officer, Greg Foulis said “It’s a testament to the thoroughly dedicated and professional staff at Chatree.”
Following these repayments Kingsgate’s Group total debt position will be A$5 million1, which is scheduled for repayment at the end of January 2017, down from A$72 million at 30 September 2016.
In addition, Kingsgate is also pleased to announce that the final payment of A$4.1 million (which includes an interest payment of 10% per annum calculated from 30 September 2016 until the date of final payment) has now been received from Silver Mines Limited (ASX:SVL), which completes their acquisition of the remaining 15% of the Bowdens Silver Project.
Greg Foulis
Chief Executive Officer
Kingsgate Consolidated Limited
Notes:
1. KCN Group Debt includes the Chatree Loan Facility and a corporate facility totalling A$5 million that is due for repayment in January 2017.
Appointment of Vice President – Project Development
Appointment of Vice President – Project Development
Kingsgate Consolidated (ASX:KCN) (“Kingsgate” or the “Company”) is pleased to announce the appointment of Mr Leonardo Hermosilla as Vice President – Project Development.
Leonardo will be based in Santiago, Chile, and his responsibilities will include the delivery of feasibility and development outcomes for the 100% owned Nueva Esperanza Project in Chile.
This appointment reflects Kingsgate’s strong commitment to advancing three key work streams at Nueva Esperanza in 2017, which includes feasibility, permitting and exploration activities.
Leonardo is a highly experienced Metallurgical Engineer with over 30 years of operational and development experience in South America, Canada and South Africa having worked for various multinational mining and EPCM firms including Barrick, Anglo American, Hatch, Kvaerner and Ausenco.
Leonardo’s project leadership, technical experience and extensive industry knowledge in South America make him a valuable addition and key member of our executive team.
Greg Foulis
Chief Executive Officer
Kingsgate Consolidated Limited
Thai Government Clarifies its Position
Thai Government Clarifies its Position
Kingsgate Consolidated Limited (ASX:KCN) (“Kingsgate” or the “Company”) advises that the Government of Thailand has clarified its position that all operations will cease at the Chatree Gold Mine (“Chatree”) as from 1 January 2017.
The Thai government has issued an Order under Section 44 of the Thai Constitution which is, amongst other things, to the following effect:
- Persons authorised to issue metallurgical processing licences, concessions and permits are required to suspend permission for all gold mine exploration and operations, as well as the renewal of gold mine concessional and metallurgical processing licences until the Committee on National Mineral Management (“Committee”) resolves otherwise; and
- Business operators holding concessions and licences relating to gold mining operations are required to suspend their business from 1 January 2017, until the Committee resolves otherwise
Kingsgate’s wholly-owned subsidiary, Akara Resources Public Company Limited, has been contacted by the Office of the Prime Minister of Thailand to arrange a meeting for next week with the Deputy Prime Minister.
However, Chatree will be placed on Care and Maintenance at the end of this month.
Greg Foulis
Chief Executive Officer
Kingsgate Consolidated Limited
Chatree Gold Mine Production and Debt Position Update
Chatree Gold Mine Production and Debt Position Update
Kingsgate Consolidated (ASX:KCN) (“Kingsgate” or the “Company”) is pleased to provide an update on the Chatree Gold Mine’s (“Chatree”) November production, following another strong performance.
Chatree production for November 2016 is as follows:
- 18,697 ounces of gold produced;
- 18,399 ounces of gold poured; and
- 17,115 ounces of gold sold.
Another discretionary payment against the Chatree Loan Facility of US$5.2 million was made on 2 December 2016, and it is intended that a further discretionary payment of approximately US$5 million will be made on 9 December 2016.
Following these repayments Kingsgate’s Group total debt position will be A$13 million1, down from A$72 million at 30 September 2016.
As previously stated, Kingsgate reasonably expects that Chatree related debt will be fully repaid before 31 December 2016.
Greg Foulis
Chief Executive Officer
Kingsgate Consolidated Limited
Notes:
1. KCN Group Debt includes the Chatree Loan Facility and a corporate facility totalling A$5 million that is due for repayment in January 2017.