Kingsgate Secures US$25M Loan, Cuts Borrowings from A$47M to A$15M

Kingsgate’s Strategic Refinancing

Kingsgate Consolidated Limited has announced a significant refinancing milestone with the establishment of a new US$25 million standby loan facility arranged with Nebari Natural Resources Credit Fund II, LP and its affiliates. This new facility replaces the company’s existing US$31 million loan, enabling a substantial reduction in total borrowings and marking a decisive step in Kingsgate’s ongoing de-gearing efforts.

The initial drawdown of US$10 million, combined with cash proceeds of approximately US$21 million, will reduce Kingsgate’s total debt by 68%, from A$47 million to A$15 million. This dramatic cutback in leverage is a positive signal to investors, reflecting improved financial stability and a stronger balance sheet.

Improved Loan Terms and Flexibility

Beyond the headline reduction in debt, the new facility offers several enhancements over the previous arrangement. Interest rates on drawn amounts have been lowered by up to 1.25% per annum, reflecting more favourable borrowing costs. Additionally, the loan maturity dates have been extended by approximately six to twelve months, providing Kingsgate with greater breathing room to manage repayments.

The facility also introduces a flexible drawdown structure, allowing Kingsgate to progressively access funds over the next 12 months after an initial minimum drawdown. Notably, there are no principal repayments required in the first six months following the closing date, easing near-term cash flow pressures.

Warrants Restructured to Align Interests

As part of the refinancing, Kingsgate has negotiated the removal of contingent warrants previously due in January 2027. Instead, Nebari will receive approximately 1.95 million new subscription warrants exercisable at a premium to the recent share price, with a two-year expiry. This adjustment aligns the interests of both parties while reducing potential dilution risks for existing shareholders.

These subscription warrants are non-transferable without Kingsgate’s consent and will only convert into shares if exercised, providing a balanced approach to incentivising Nebari’s ongoing support without immediate equity dilution.

Management and Partner Perspectives

Kingsgate’s Managing Director and CEO, Jamie Gibson, expressed gratitude to Nebari for their continued partnership and swift credit approval process. He highlighted the refinancing as a key milestone that not only deleverages the company but also offers valuable funding flexibility for future growth initiatives.

From Nebari’s side, Senior Managing Director Roderik van Losenoord praised Kingsgate’s operational progress, noting the company’s ramp-up from no production to significant gold and silver output within a year. He reaffirmed Nebari’s commitment to supporting Kingsgate’s future achievements.

Looking Ahead

The new facility is expected to close in early January 2026, subject to standard conditions precedent. Investors will be watching closely for the forthcoming Appendix 2A disclosure detailing the exact number of subscription warrants issued. Meanwhile, Kingsgate’s ability to leverage this refinancing to fund growth while maintaining a healthier balance sheet will be critical to its market positioning in the year ahead.