Notes to the Financial Statements
90
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Corporate loan facility
The Group has a three year secured loan facility 
with Investec with a limit of A$40,000,000  
(30 June 2012: A$50,000,000), of which 
A$20,000,000 has been drawn down as at  
30 June 2013 (30 June 2012: A$40,000,000). 
Convertible loan facility
The Group has a five year A$35,000,000 
convertible loan facility entered into in a prior 
period to provide funding for the Bowdens 
acquisition. The Group has the option to make a 
prepayment against the facility with an issue of 
Kingsgate shares.
Corporate loan facility and convertible loan facility 
restructure
As indicated previously in the Preliminary Final 
report, at balance date it was the Group’s inten-
tion to restructure and amalgamate these 
facilities in the next financial year. This relates to 
the potential for completion of the Initial Public 
Offering of Akara on the Stock Exchange of 
Thailand and the updated mine plan for 
Challenger. Any restructure would optimise the 
Group’s anticipated balance sheet liquidity and 
operational cash flows. Accordingly, the Group 
has classified the total amount drawn down 
under these facilities of $55,000,000 as a 
current liability at 30 June 2013. In addition, as a 
result of the intended restructure, $3,900,000 
of previously capitalised borrowing costs 
relating to the convertible loan and corporate 
loan facilities has been expensed at year end.
Subsequent to the end of the financial year, the 
Group has received from its lenders a credit 
approved term sheet (subject to formal docu-
mentation) for the restructure of the corporate 
loan and convertible loan facilities. Following 
completion of the restructure the total amount 
outstanding will be reduced to $40,000,000. 
This loan will be provided through a single senior 
corporate facility which will consist of two 
tranches:
〉〉   Tranche one will be a $25,000,000 Akara 
Pre IPO Bond with a maturity date of 31 
July 2015. The current intention is for this 
tranche to be repaid as part of the Akara 
IPO although at Kingsgate’s election 
repayment can be made by either cash or  
in Kingsgate’s shares.
〉〉   Tranche two is an amortising facility with 
$5,000,000 to be repaid during the 2014 
financial year and the balance of 
$10,000,000 repaid during the 2015 
financial year.
Convertible revolving credit facility
The Group also has a three year $25,000,000 
Convertible Revolving Credit Facility available.  
At the date of this report the facility is undrawn. 
Under the terms of this facility, Kingsgate has 
the option of repaying any funds drawn down 
under the facility through either cash or by 
issuing ordinary shares. It is intended that this 
facility will be utilised during the 2014 financial 
year for corporate and working capital purposes. 
It is the current intention of the Company to 
repay any cash drawdown under the facility by 
issuance of fully paid ordinary shares which 
would rank parri pasu with all existing ordinary 
shares, although this position will be reviewed at 
the appropriate time. The number of shares has 
not yet been determined and they will be issued 
at a 2.5% discount to VWAP over a period by 
reference to the draw down date. Shareholder 
approval is not required.
As security against the above loans the lender 
has a fixed and floating charge over Kingsgate 
and its material subsidiaries. 
Multi-currency and syndicated loan facilities
Kingsgate’s Thai operating subsidiary, Akara, 
established a six year amortising multi-currency 
loan facility equivalent to US$125,000,000 
(fully drawn as at year end) and an additional 
Thai Baht denominated working capital facility 
equivalent to US$15,000,000 (undrawn as at 
year end) during the year. The proceeds from 
these borrowings were used to fully repay the 
outstanding balance on the US$100,000,000 
Baht denominated syndicated loan facility in 
existence at the beginning of the year as well