Kingsgate Consolidated Limited (ASX:KCN) Secures Akara Expansion Financing
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) is a highly successful ASX listed gold company with significant expertise in gold exploration, development and mining, using world's best practice for safe, environmental and socially responsible operations.
The company was listed in 1988 and commenced gold production at its Chatree Gold mine in Thailand in 2002. Today, with geopolitical diversification Kingsgate owns and operates two gold mines, the high quality Chatree mine in Thailand and the underground Challenger mine in South Australia, together producing approximately 200,000 ounces of gold per annum. In addition, the company has two major development projects, the Nueva Esperanza silver/gold project, in the highly prospective Maricunga Gold/Silver Belt in Chile, and the Bowdens silver project in New South Wales in Australia.
From the strong operating and development platform, Kingsgate aims to build value though earnings and dividend growth for the benefit of all shareholders.
Kingsgate Consolidated Limited
CIMB THAI Bank Public Company Limited