InvestSMART

Kingsgate Consolidated Limited (ASX:KCN)

ALERT: Price-sensitive ASX Announcement for KCN
Current share price for KCN : $5.240 -1.63 (-23.73%)+
Announcement
Release
14 May 2026 9:42AM
Price at Release
$6.870
Full Release
download
Summary
Kingsgate Consolidated Limited has acquired the royalty and water rights from Inversiones Anglo American Norte SpA for the Nueva Esperanza Silver-Gold Project in Chile. This acquisition aims to remove financial and operational constraints, thereby improving project economics and advancing development. The transaction cost includes an upfront cash payment of US$15.6M and contingent payments totaling US$6.0M. This strategic move secures long-term water rights critical for the project's location in the arid Atacama region, simplifying the development pathway and enhancing the project's value. Kingsgate's strategy involves reducing encumbrances and costs, with plans to potentially list the project separately on the Australian Securities Exchange to unlock value for shareholders.
Key Points
  • Acquisition of Royalty and Water Rights from IAAN.
  • Total transaction cost of US$21.6M.
  • Payment includes US$15.6M upfront and US$6.0M contingent.
  • Elimination of future pre-production royalties of US$2.0M per annum.
  • Securing long-term water rights critical for the Atacama region.
  • Improvement in project economics and simplification of development pathway.
  • Potential separate listing of Nueva Esperanza on ASX considered.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.