Update on the Sale of the Bowdens Silver Project

30 September 2016

Update on the Sale of the Bowdens Silver Project

Kingsgate Consolidated (ASX:KCN) (“Kingsgate” or the “Company”) is pleased to provide an update on the purchase of the remaining 15% of the Bowdens Silver Project by Silver Mines Limited (ASX:SVL).

On 30 June 2016, Kingsgate advised that it had entered into a Deed of Variation with Silver Mines Limited, for an additional payment of A$5 million in return for the remaining 15% of the Bowdens Silver Project.

By way of an amendment to the Deed of Variation, both Kingsgate and Silver Mines Limited have now agreed to the following terms:

  • Kingsgate will receive a non-refundable payment of A$1 million on 30 September 2016, with the residual amount to be paid on or prior to 30 December 2016;
  • the remaining A$4 million (plus interest of 10% per annum calculated from 30 September 2016 to the date payment is made) of the post completion amount is payable to Kingsgate; and
  • should Silver Mines Limited not pay the final balance of A$4 million by 30 December 2016, the parties will form an unincorporated 85%-15% Joint Venture with Kingsgate retaining 15% as contemplated under the original Agreement.

Greg Foulis
Chief Executive Officer


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