Kingsgate Reassures Shareholders

By Glenn Dyer | More Articles by Glenn Dyer

Gold miner and explorer Kingsgate Consolidates (KCN) said on Sunday that media reports early last week were incorrect and misleading when reporting on the company's mining applications in Bangkok.

"This led to a misinformed market," the company said.

Reports that Thai Government has suspended consideration of all application for gold exploration and production licences in some areas caused negative sentiment in the market, with the share price plummeting by as much as 21% on the day.

In response, Kingsgate reassured shareholders today that lease applications are unaffected by the new review process.

"Kingsgate's current mining operations and activity on 52 granted exploration leases are also unaffected," the company said.

Applications related to Akara Mining, the Thai subsidiary which operates the Chatree pit, were said to be suspended.

Thai investors hold 52% of the share issued in Akara with the remaining 48% held by Kingsgate.

Chatree is located 280 km to the north of Bangkok and Kingsgate holds about 1,200 square kilometres of exploration tenements in the region.

The Chatree North mine lease applications are being processed as normal and are nearing completion of all procedures.

"During the meeting in Thailand, it was reconfirmed by the senior officials in the Thai Department of Primary Industry and Mines (DPIM) and the Ministry of Industry that once all procedural steps were completed, the DPIM would process Kingsgate's Mine Lease Applications quickly," Kingsgate said in a statement.

"Last month, at Kingsgate's AGM, the chairman had advised that it was unlikely that Mine Leases would be granted ahead of the national elections scheduled for 23 December 2007.

The shares in the Sydney-based company recovered, up 14% to $4.50.

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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