Why the Kingsgate Consolidated Limited share price just rocketed higher

The Kingsgate Consolidated Limited (ASX:KCN) share price has been a huge mover after the Thai government lifted its suspension on the company’s Chatree Mine…

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Gold mining share price

The Kingsgate Consolidated Limited (ASX: KCN) share price has been one of the biggest movers on the market today.

In afternoon trade the gold miner’s shares are up a massive 36% to 30 cents.

Why are its shares higher?

This morning the company advised that it met with representatives of the Royal Thai government to discuss a possible settlement of its claims against the Kingdom of Thailand under the Australia-Thailand Free Trade Agreement.

This was in relation to the Thai government suspending operations at the company’s Chatree Mine on January 31 2017.

Pleasingly for the company, this suspension has now been lifted and Kingsgate’s renewal of its Metallurgical Processing Licence can be processed.

While no financial compensation will be provided by the government, the miner has been advised that the government may provide other meaningful benefits in consideration of the shut-down of the Chatree Mine.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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