Kingsgate Consolidated Limited (ASX:KCN) has executed documentation for a secured Bridge Facility of US$15 million to support the refurbishment and restart of the Chatree Gold Mine in Thailand.
The funding is being provided by the Taurus Mining Finance Fund No.2 L.P., with the first tranche of funds of US$7.5 million due to be received by the end of this week.
The Bridge Facility will fund the following key steps at Chatree including:
• The appointment of an international engineering firm to refurbish and restart Chatree, with initial works focusing on refurbishing and recommissioning Plant #2 as a priority;
• The procurement of identified “long lead” items required to refurbish the plant;
• The appointment and mobilisation of key Chatree technical staff with the recruitment process now entering its final stages and;
• An expansion of the regional exploration programme, including RC drilling of prospective near mine areas.
Executive Chairman, Ross Smyth-Kirk, said to ensure that Kingsgate has adequate capital to fully fund the refurbishment and restart of Chatree, the company is also negotiating with the Lender a US$30 million Project Facility to replace the Bridge Facility at the appropriate time.
The proposed Project Facility remains subject to satisfaction of further due diligence.
The Chatree Gold Mine is located in central Thailand, approximately 280 kilometres north of Bangkok. Chatree’s operations have historically been a large scale, low-grade, open pit gold mine.
Chatree was Thailand’s first and largest modern gold mine, and it commenced commercial operations in November 2001. Since then, Chatree has produced more than 1.8 million ounces of gold and more than 10 million ounces of silver.
For further information please visit: https://www.kingsgate.com.au/