Ann: Kingsgate completes $46M institutional placement, page-283

KCN has shown its preference for investors over traders with the institutional placement.
It has over 8000 retail investors who tend to be stickier than institutional.
If each subscribed the minimum $2000 they could raise 16M
My opinion on Plant #1 was shaped by experience in O&G where its inconceivable that a 20 year old plant with a 6 year down time would receive permits to recommission.
However ore processing is less hazardous due to the lower temperatures and pressures involved as well as the absence of volatility of the raw material.
Corrosion standards are much less stringent, I've been informed.
However it would still require at least $30M to revamp Plant #1 in my estimate.
The Thai household sector is one of the most indebted in Asia and Thai banks may be reluctant lenders to only the highest quality clients
With the placement KCN has ensured its survival.
It needs a highly successful SPP to ensure its future.
Equity is preferable to debt for KCN