• Kingsgate enters into a new US$25M standby loan facility with Nebari
• Facility will be used to refinance existing US$31M loan, reducing total borrowings by 68%
• New facility provides flexibility with reduced interest rate and extended maturity

Kingsgate Consolidated Limited (ASX: KCN) has announced that it has entered into definitive documentation for a new US$25,000,000 standby loan facility with Nebari Natural Resources Credit Fund II, LP, and other Nebari-affiliated entities. An initial US$10 million drawing from the new facility and cash proceeds of ~US$21 million equivalent will be used to refinance Kingsgate's existing US$31 million loan facility. This new facility marks a significant milestone towards de-gearing, and following the refinancing and initial US$10 million drawdown, Kingsgate's total borrowings will reduce by 68% from A$47 million to A$15 million. Key highlights of the refinancing include flexibility to progressively drawdown over the next 12 months, a reduction in the interest rate on drawn amounts by up to 1.25% per annum, no principal repayments in the first six months, an effective increase in the loan maturity date, and the expunging of the contingent issuance of ~2.9 million warrants. Kingsgate's Managing Director and CEO, Jamie Gibson, commented that the new facility provides beneficial funding flexibility while significantly deleveraging the company.

Following the refinancing and initial US$10 million drawdown, Kingsgate's total borrowings will reduce by 68% from A$47 million to A$15 million.