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Metal Tiger urges dismissal of Kingsgate board in extraordinary meeting to be held in January

Metal Tiger is agitating for major change at the top of Kingsgate Consolidated
gold bars and nugget
Significant potential gold production from the Chatree mine in Thailand is at stake

Kingsgate Consolidated Limited (ASX:KCN) is to hold an extraordinary meeting of shareholders on 9 January 2018, following agitation from London’s Metal Tiger PLC (LON:MTR).

If Metal Tiger gets its way, a new board will be elected for Kingsgate at the meeting. Metal Tiger is Kingsgate's largest shareholder, with a 6.7 per cent interest.

WATCH: Metal Tiger takes aim at Australian miner Kingsgate Consolidated

Metal Tiger requested the Kingsgate shareholder meeting to remove all but one member of the board, and has proposed that five new directors be appointed, including three directors of Metal Tiger.

"We encourage shareholders to vote in favour of all resolutions to appoint a new board at Kingsgate," said Metal Tiger chief executive Michael McNeilly.

"We believe the proposed directors have the experience, expertise and relationships that can lead to the reopening of the Chatree gold mine, Kingsgate's only operating asset, and restore value." 

Metal Tiger acknowledges Kingsgate has successfully mined the higher-grade gold at Chatree to increase revenue and repay debt after its metallurgical licence was renewed for only six months.

READ: Metal Tiger rips into Kingsgate Consolidated and calls for boardroom coup

Key issues for consideration at the meeting will be the implications of the new Minerals Act, the draft Mineral Royalty Act, the draft Mineral Management Master Plan, the new Gold Policy and its impacts, licence status, litigation status - both locally and in Bangkok - community issues, environmental concerns, and Thai ownership concerns.

According to Metal Tiger, Kingsgate is going to need substantially more capital to finance its current strategy unless it is successful in obtaining a legal settlement.

McNeilly, however, spoke of interest from investors in Europe, North America, Asia and the Middle East to help finance a restart.

"But it is our view that such a strategy can only be implemented under a new Board given the bridges that have been burned by Kingsgate's incumbent directors. This is not about Metal Tiger gaining control of Kingsgate, this about change for the benefit of all shareholders," he said.

 

 

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Newswire
October 01 2018

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