Kingsgate Consolidated (ASX:KCN) has satisfied conditions to receive a US$25 million ($37.2 million) loan facility from the Nebari Natural Resources Credit Fund II and other Nebari-affiliated entities.
The loan facility will support the company’s balance sheet de-gearing strategy while also providing funding flexibility for future operational initiatives.
While satisfying conditions for Nebari’s loan facility, Kingsgate repaid its existing facility and drew down US$10 million from Nebari.
The company has now reduced its borrowings to $15 million, from an original $47 million, indicating a 68% reduction.
Highlights from the financing includes flexibility to drawdown over the next year after the initial drawdown, a reduction in interest rate on drawn amounts by up to 1.25% per year, no repayments in the first six months from closing, and an increase in loan maturity by six months relative to tranche one and one year relative to tranche two.
Kingsgate Consolidated is a gold producer, explorer, and developer focused on its flagship Chatree Gold Mine in central Thailand.
Chatree holds a mineral resource of 2.64 million ounces of gold and 20 million ounces of silver, with an ore reserve of 1.22 million ounces of gold and 10 million ounces of silver.
Write to Maddison Elliott at Mining.com.au
Images: Kingsgate Consolidated
