Kingsgate Consolidated Limited - Completion of sale of Bowdens Silver
Kingsgate Consolidated (ASX:KCN) has announced the completion of the sale of an 85% interest in the Bowdens silver project for A$20m. In addition, Kingsgate has now agreed to sell the remaining 15% interest in Bowdens for A$5 million, to be settled by 30 September 2016.
- Sale of Bowdens Silver to Silver Mines Limited is complete
- Renegotiation of terms allowing for Silver Mines to move to 100% ownership
Bowdens Silver Sale Complete
On 3rd March 2016 Kingsgate Consolidated Limited (“Kingsgate” or “the Company”) announced it had entered into a Sale and Purchase Agreement (“the Agreement”) whereby it would divest 85% of the Bowdens Silver Project in New South Wales to Silver Mines Limited (“Silver Mines”) for total cash consideration of A$20 million. Under the Agreement Silver Mines and Kingsgate Consolidated would operate the Project on an unincorporated Joint Venture basis.
Kingsgate is pleased to advise that the sale of Bowdens Silver was completed on 29th June 2016 through the payment of A$18 million with A$2 million having been previously paid by way of a deposit.
Sale of Outstanding 15% Interest in Bowdens Silver
Kingsgate is also pleased to advise that it has entered into a Deed of Variation with Silver Mines whereby:
- The price for the sale of 100% of Bowdens Silver is varied to A$25 million;
- Silver Mines now owns 100% of Bowdens;
- Silver Mines will pay the balance of A$5 million by 30th September 2016, or such other date as may be agreed;
- Should Silver Mines elect not to complete the final payment, the parties will form an unincorporated Joint Venture as originally contemplated under the Agreement.