Kingsgate Consolidated Secures $35 Million Funding from Nebari
KCN (KCN) Share Update July 2024 Wednesday 17th
Kingsgate Consolidated Secures $35 Million Funding from Nebari
Kingsgate Consolidated Limited (ASX: KCN) has announced that it has successfully secured a $35 million term facility from Nebari Gold Fund 1 and Nebari Natural Resources Credit Fund II. The funds will be used to support various strategic initiatives, including debt repayment, equipment delivery, and exploration programs.
Instant Summary:
- Secured $35 million term facility from Nebari.
- Funds to be used for debt repayment, equipment delivery, and exploration.
- Focus on ramping up Chatree Gold Mine to full production.
- Capital restructuring contingent on maintaining good order of the facility.
Funding Details
Kingsgate Consolidated Limited has announced the successful drawdown of a $35 million term facility from Nebari Gold Fund 1 and Nebari Natural Resources Credit Fund II. The funds have been received following the satisfaction of all conditions precedent.
The company plans to use the funds for several key initiatives. These include repaying preference shareholder loans, ensuring the timely delivery of new mining equipment, expanding near-mine and regional exploration programs, and upgrading the existing resource base at the Chatree Gold Mine. Additionally, Kingsgate will undertake capital restructuring provided the facility is kept in good order.
Management Statements
Jamie Gibson, Managing Director of Kingsgate, expressed his enthusiasm for the partnership with Nebari, stating, 'We look forward to working with Nebari to support Chatree’s ongoing ramp-up to full production, and in particular, we appreciate their efforts to help us expedite the receipt of funds.'
Roderik van Losenoord, Managing Director of Nebari, also commented on the partnership, saying, 'Nebari is very pleased to continue its partnership with Kingsgate Ltd, and to support Chatree’s ongoing ramp-up to full production. We look forward to continuing our role as a supportive partner and lender and are thankful to the entire Kingsgate team for the trust and great partnership.'
This funding is expected to have a positive impact on Kingsgate's stock as it provides the necessary capital to advance key projects and initiatives. The focus on ramping up production at the Chatree Gold Mine and expanding exploration programs could lead to increased revenue and resource base, which is likely to boost investor confidence.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting the strategic importance of the funding for Kingsgate's growth and operational efficiency. The partnership with Nebari is seen as a strong endorsement of Kingsgate's management and project potential.
Conclusion:
Investors should keep an eye on Kingsgate's progress in utilizing the funds to achieve its strategic goals. The successful ramp-up of the Chatree Gold Mine and the expansion of exploration programs could significantly enhance the company's value. Staying informed about further developments will be crucial for making informed investment decisions.