Kingsgate shares surge as Thailand lifts Chatree suspension
PERTH (miningweekly.com) – The share price of embattled Kingsgate Consolidated rose by more than 36% on the ASX on Friday after the Thai government lifted a temporary suspension on the Chatree gold mine.
Production at the mine ceased at the end of December, in compliance with the requirements of the government. No reason was given for the closure order.
Kingsgate in April launched a claim against the Thai government under the Australian-Thailand Free Trade Agreement (Tafta), claiming that measures taken by the Thai government against the Chatree gold mine were in violation of this agreement.
Ahead of its meeting with the Royal Thai government to discuss a possible settlement of these claims, Kingsgate on Friday reported that the temporary suspension order was lifted.
Furthermore, the company has advised that its application for a renewal of its metallurgical processing licence, which expired at the end of December last year, could now be processed.
However, Kingsgate told shareholders that the Thai government made no offer of monetary compensation for the losses that the company suffered as a result of the closure and the expropriation of the Chatree mine, or for the substantial expense that would be incurred in restarting operations.
Instead, the Thai government expressed its willingness to provide other "meaningful benefits" in consideration of the shutdown of the Chatree mine, Kingsgate said.
The company told shareholders that it would further explore the matter, along with a number of other unresolved issues, and had reserved its legal position under Tafta, while allowing for further dialogue with the Thai government.
Kingsgate shares were trading at a high of 34c a share on Friday, up from a low of 28.5c a share.
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