"I see some of the IPO money being used to accelerate the development of Chatree."
The IPO money would belong to Kingsgate and not the IPO company, whatever that is called, which would own all the Thai assets.
Kingsgate could lend some of the funds raised from the IPO to the IPO company for activities that could include exploration, but only on an arms length basis given Thai sensitivity about the relationship between Kingsgate and the IPO company. Once Akara is spun out Kingsgate would need to operate in a way that ensured that it did not appear to be given an advantage over other shareholders.
I think the IPO money will be used in part to repay any loans outstanding in its name, pay out the Swiss country risk insurance companies (around $100m?). I am hoping there will be enough left over for a $1/share return of capital to shareholders and the rest used for KCN share buybacks.
I am not sure what would can be done about the Chile project which now may be pretty worthless (and a possible financial liability) given the the political situation in Chile.
loki (no love for KCN this morning while other goldies are responding to the rise in the gold price.)
KCN Price at posting:
$1.51 Sentiment: None Disclosure: Held
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