Kingsrose Mining has agreed with each of its lenders – Michael John Andrews, Great Golden Investment Limited and Beaurama Pty Ltd – to restructure the repayment profile of the company’s loan facilities.
The company commenced repayment of the facilities on July 31, 2015, with a total of Aus$1.8 million repaid to date. In light of recent operational challenges faced by the company, the Board has considered it prudent to defer any further repayment of the remaining Aus$10.1 million for six months.
Under the revised terms, repayment of the outstanding principle will recommence in April 2016 with final repayment due in August 2017. Interest is payable monthly in arrears and the applicable interest rates remain unchanged. No restructuring fees were charged by the Lenders.
Kingrose Mining’s non-executive director Bill Phillips said, “The lenders have a long standing relationship with Kingsrose and are pleased to provide ongoing support whilst the company works to establish a stable, long-term production profile from the Talang Santo Mine.
“The successful transition to Shrink and Gallery stoping during the September quarter with an initial 4272 tonnes at 16.94 grams/tonne gold mined from the 4 Level stopes bodes well for the December quarter and reaffirms our view that the Talang Santo Mine is a high grade ore body capable of delivering long term value to shareholders.”
Kingsrose owns 85% of the Way Linggo Gold Project in Southern Sumatra, Indonesia. The project is held under a 4th Generation Contract of Work (CoW), has established infrastructure with a 140,000 tonnes/annum processing plant and has a track record of high-grade, low-cost production from the original mine.
The company is producing from Talang Santo, its second mine on the project area which, based on current development, is pointing to being a significantly larger mineralized system than the Way Linggo mine. In addition, significant exploration upside exists in the wider area with numerous high priority targets identified.
Kingsrose also advised on November 3 of the resignation of its managing director Scott Huffadine, who has given the company a three month notice period. During this time Kingsrose will start the search for a new managing director.
Chairman John Morris said, “Scott played a key role in securing the final permits for Talang Santo, paving the way for the start of production in July last year. The company has recently started Shrink and Gallery stoping at Talang Santo, where the ongoing management of water and the increasing broken ore stocks provide a platform for rising production over coming months.”
“Scott’s achievements have put Kingsrose in a far stronger position and we can now look forward to rising production, lower costs and growing cashflow.”