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- Kingsgate (KCN) completes a $46 million institutional placement to fund the commissioning of its Thailand assets
- Under the placement, the company will issue 30.7 million new fully paid ordinary shares at $1.50 per share
- The company has also launched a $10 million share purchase plan, allowing shareholders to subscribe for up to $30,000 worth of shares at the same price
- The proceeds will go toward Kingsgate’s Gold Plant 2 commissioning and working capital costs, as well as its US$15 million Taurus bridge facility repayment
- KCN shares closed 25.37 per cent lower at $1.50 on Friday afternoon
Kingsgate Consolidated (KCN) has completed a $46 million institutional placement to fund the commissioning of its Thailand assets.
Under the placement, the company will issue 30.7 million new fully paid ordinary shares at $1.50 per share. The company has also launched a $10 million share purchase plan, allowing shareholders to subscribe for up to $30,000 worth of shares at the same price.
KCN said it would put the proceeds towards its Gold Plant 2 commissioning and working capital costs as the processing of stockpiles re-commence.
Kingsgate earlier this month received long-awaited government approval to reopen its Chatree gold mine in Thailand.
The Chatree mine came to a halt in May 2016 when the Thai Government announced that all gold mining in the country would cease by December 31.
The company will also use the funds to help repay a US$15 million (A$22 million) Taurus bridge facility and accelerate its Plant 1 refurbishment.
Kingsgate Executive Chairman Ross Smyth-Kirk said that the strong support from both new Australian and international investors, along with existing shareholders, was a “firm endorsement” of the company and its strategy.
“We are thrilled to be recommencing operations at Chatree and returning to production,” Mr Smyth-kirk said.
“We thank shareholders for their long-standing support and look forward to seeing Chatree once again become a meaningful ASX-listed gold-producing project.”
Settlement of the placement is expected to occur on March 30, followed by the issue and allotment of the shares the following day.
KCN shares closed 25.37 per cent lower at $1.50 on Friday afternoon.
