Kingsgate In Trading Halt Amid Speculations

Gold miner and explorer, Kingsgate Consolidated (KCN) fell by as much as 21% to $3.87 on Monday after the company requested a trading halt pending the release of an announcement.

Speculation is rife about the nature of the announcement, especially after an article published in the Bangkok Post on Monday said that Thai Government has suspended consideration of all applications for gold exploration and production licences in the Phichit and Phetchabun provinces.

The article said that 53 of the applications relate to Akara Mining, a Kingsgate subsidiary.

The reason for considering the suspension was ‘concern about the environment', according to Anusorn Nuangpolmark, director-general of the Primary Industries and Mines Department.

In addition, the article reports that 'the National Economic and Social Development Board (NESDB) wanted a detailed study of the economic benefits of gold mining for the country before approving further exploration.

Mr Anusorn said the decision would delay related activities of other state agencies, such as awarding land rights for mine activities.

The Sydney-based company said normal trading will recommence on 5 December 2007 or when the announcement is released to the market.

Shares in Kingsgate closed 19.4% down at $3.95.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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