https://www.kingsgate.com.au/wp-content/uploads/2014/03/ASX-Icon.png 80 80 Kingsgate Web Admin https://www.kingsgate.com.au/wp-content/uploads/2015/05/KCN_WebLogo_SMALL.png Kingsgate Web Admin2018-11-01 15:58:072018-11-01 16:00:07September 2018 Quarterly Report
For the period ending 30 September 2018
- Following the appointment of a corporate advisor to identify advantageous options to monetise the Nueva Esperanza Project, expressions of interest are currently being sought from interested parties.
- The response has been positive with a number of interested parties engaging in the requisite due diligence and requesting site visits.
- Political Risk Insurance Claim (“PRI”) – In October 2017, Kingsgate commenced proceedings in the New South Wales Supreme Court against Zurich Insurance Australia Ltd, and other named insurers, under a Political Risk Insurance Policy (with a maximum liability of US$200 million) that was held by the Company when the Thai Government expropriated the Chatree Gold Mine in May 201.
- On 6 July 2018, a Directions Hearing was held in the Supreme Court of New South Wales for the Company’s PRI claim.
- The Court listed the Proceedings for trial, for up to fifteen days commencing on 3 June 2019.
- Kingsgate remains open to achieving a settlement, but in the meantime will continue to prosecute its claim against the insurers in the Supreme Court of New South Wales.
- TAFTA Claim – The Tribunal has adopted a Procedural Calendar which provides that the merits of the TAFTA (“Australia Thailand Free Trade Agreement”) Claim will be heard on 18 November to 29 November 2019.
- However, the Tribunal has also ordered that the proceedings are to be kept confidential, except where disclosure is required to fulfil a legal duty.
- Kingsgate remains committed to seeking a settlement of the matter with the Thai Government.
- In May 2018, Kingsgate drew down a $15.0 million Standby Loan Facility (“SLF”) in order to ensure continuing
funding of its activities.
- The SLF is on normal commercial terms for a loan of this nature, other than the utilisation fee under the SLF which has been satisfied by the issue of 2,641,003 Kingsgate shares. (See ASX:KCN “Appendix 3B – Issue of Shares” dated 7 May 2018).
- Investec Australia Finance Pty Limited (“Investec”) has agreed to extend the repayment date of its loan to the Company to February 2019, and to increase the Facility Limit from $15 million to $20 million.
- Cash at 30 September 2018 totalled A$1.5 million.
- Corporate debt at 30 September 2018 is A$15.0 million.