Kingsgate Consolidated Limited (ASX:KCN) Secures Akara Expansion Financing
Sydney, May 4, 2011 AEST (ABN Newswire) - Kingsgate Consolidated Limited (ASX:KCN) (PINK:KSKGF) is pleased to announce that today its Thai subsidiary, Akara Mining Limited, executed a US$100 million baht denominated syndicated loan facility that completes its funding requirements for the expansion of its Chatree Mine to over 5 million tonnes per annum ore throughput. The participants in the syndicated loan facility are CIMB Thai Bank Public Company Limited (CIMB) (BAK:CIMBT), the Bangkok branch of Sumitomo Mitsui Banking Corporation (SMBC) and Investec Bank (Australia) Limited (Investec). Participation is US$42 million, US$40 million and US$18 million respectively.
CIMB and SMBC are Mandated Lead Arrangers with CIMB also acting as Facility and Security Agents.
Investec is the Arranger and Technical Agent.
The syndicated loan facility is a four year amortising loan with equal half yearly repayments commencing on 31 March 2012. The loan documentation contains no mandatory hedging requirements.
In conjunction with the syndicated loan facility, Kingsgate's existing one year standby A$60 million facility with Investec, that has been used as a bridge while the expansion funding was completed, is being replaced by a three year US$50 million revolving facility with Investec.
The Chairman of Kingsgate, Ross Smyth-Kirk commented that "the continued support of Investec and that of our new Thai lenders demonstrates their strong confidence in the future of the Chatree Mine."
Mr Smyth-Kirk added "Expanding the plant to over 5MTPA brings a new dimension to the Thai operations and accelerates Kingsgate's thrust to become the preferred mid-tier ASX gold producer".
About Kingsgate Consolidated Limited
Kingsgate Consolidated Limited (ASX:KCN) (OTCMKTS:KSKGF) is an experienced pacific rim gold producer and highly successful ASX listed gold company with significant expertise in gold exploration, development and mining.
Kingsgate owns and operates the Chatree Gold Mine in central Thailand and the Nueva Esperanza Development Project, located in the highly endowed Maricunga gold and silver belt of the Atacama Region of northern Chile.
The Chatree Gold Mine is a world class gold producing asset, with a proven operating history, with 1.8 million ounces of gold and 10 million ounces of silver produced between 2001-2016.
Chatree is a large scale, low-cost, open pit operation with a combined +5 Mtpa processing capacity across two plants, with existing Life of Mine supporting a ~9 year mine life based on 1.3m oz gold reserve.