Dalts, your post is not factually correct.
At the time of the purchase of NE Chatree was operating it was plain that they wished to diversify their base in that region. They had a mine that was expecting to generate cash in 2016.
First production at Nueva Esperanza has been targeted for the first half of 2016.17th March 2014 "First production at , has been targeted for the first half of 2016."
https://www.miningweekly.com/article/kingsgate-says-chile-precious-metals-mine-may-cost-140m-2014-03-17 (This time the link works)
You said:-
"Management did not have a second mine that was generating revenue. This is quite a big thing for exactly this reason. It is a risk mitigation play. If KCN had some revenue over the seven years, there would have been no issue with finance at all. No cap raise etc."
It is plain that the aim was to have such a mine and the region for that mine was a matter that Gavin Thomas has taken into account when the mine was purchased. It was obviously a risk minimisation play. Something unfortunate happened on the market at this very time.
https://www.kingsgate.com.au/wp-content/uploads/documents/170314.pdfGavin Thomas, Kingsgate’s Managing Director and CEO said, “We are delighted by the results of the feasibility study,The final Nueva Esperanza Definitive Feasibility Study is a result of over three years continuous evaluation and disallowed/national/gavin-thomas--geologist-and-legend-of-australian-mining-20140606-zrzzj.html .
Did your mates have as stellar a career? You have to admit Lihir was a good find.....
He gave a speech to investors at an AGM I think but I can't find it.
I did find this:
Gavin Thomas thought this project was a "bull terrier" (at 2.25). At that stage the numbers were the subject of an independent audit (3.40-4.05). NE has a history of bonanza grades and had doubled in size as a result of Kingsgate's exploration. It may depend on the time at which you made the inquiry of your mates and the material they looked at. The belt has 100 million ounces of gold equivalent.
VIDEO Kingsgate began acquiring NE in 2009 and continued in 2011.
https://www.kingsgate.com.au/nueva-esperanza-overview/ The reserves and resources are substantial.
(20min delay)