Funds to restart Chatree secured - Kingsgate Consolidated
PERTH (miningweekly.com) – ASX-listed Kingsgate Consolidated has executed documentation for a $15-million bridge facility from Taurus Mining Finance Fund No 2, to support the refurbishment and restart of the Chatree gold mine, in Thailand.
The first tranche of funds of $7.5-million is due to be received by the end of this week.
The bridge facility will fund the following key steps at Chatree: 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; and the appointment and mobilisation of key Chatree technical staff.
Funds will also go towards an expansion of the regional exploration programme, including reverse circulation drilling of prospective near mine areas.
Kingsgate told shareholders on Tuesday that to ensure the company has adequate capital to fully fund the refurbishment and restart of Chatree, the company is also negotiating with the lender a $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.
A previously completed scoping study which focused on the option of initially refurbishing and recommissioning Plant 2 as a priority, estimated that it could be operating within four to six months from the start of refurbishment.
This option initially processes ore from the Quartz Lease and low grade stockpiles to generate sufficient cash flow to fund the refurbishment of Plant 1, and to bring Chatree back up to its full operational capacity of 5-million to 5.5-million tonnes a year.
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