PERTH (miningweekly.com) – ASX-listed Kingsgate Consolidated has received $55-million from its political risk insurers after settling a legal dispute with the company.
Kingsgate in March signed a binding heads of agreement with its insurance providers agreeing to a settlement that included a $55-million cash payment, and a requirement for the insurer to contribute up to $3.5-million on future costs towards the arbitration with the Thai government around the expropriation of the Chatree gold mine, and a sharing arrangement between Kingsgate and the insurer on the future distribution of the claim proceedings against the Thai government.
Kingsgate had political risk insurance in place in 2016, when the government of Thailand expropriated its Chatree gold mine.
Executive chairperson Ross Smyth-Kirk said on Thursday that the receipt of the settlement amount marked a turning point for Kingsgate, enabling the company to clear its corporate debt and to consider its strategy around its Nueva Esperanza project, in Chile.