The Kingsgate Consolidated Limited (ASX: KCN) share price has surged 45% higher on Thursday morning after an important update from the Aussie resources group.
Image source: Getty Images
Why the Kingsgate share price is surging 45% higher
Shares in the Aussie gold exploration and production company have been on fire this morning. The company's market capitalisation has swelled to over $250 million at the time of writing. The significant share price upswing comes after an update on its ongoing talks with the Government of Thailand.
The Kingsgate announced negotiations with the Royal Thai Government are now entering the final stages. This update comes on the back of the company's 18 February 2021 update on operating licences and permits.
Kingsgate has been negotiating with the south-east Asian government to settle on a number of actionable steps. Some of those steps outlined in today's release include:
- The grant of all operating licences and permit applications required to re-start and operate the Chatree Gold Mine;
- The renewal/approval of key exploration licence applications to enable access to previously unavailable but highly prospective areas;
- Establishing improved processes around expediting approvals of mining leases and mine plans; and
- Support from the Thai Government for the potential listing of Akara Resources on the Thai Stock Exchange.
There were a number of other items noted by the company in today's update which has sent the Kingsgate share price soaring on Thursday.
The company noted "there can be no guarantee that a negotiated settlement will be reached" but Kingsgate is "comforted by its recent engagement with the Thai Government, and Kingsgate maintains it has excellent prospects of a successful arbitral outcome if these negotiations do not successfully conclude".
The news has kicked the Kingsgate share price higher this morning. After an up and down start to the year, shares in the Aussie miner are now up 19.4% year to date following today's surge.
Foolish takeaway
The Kingsgate share price is rocketing higher on Thursday morning. It comes after a promising update on negotiations with the Thai Government to restart and operate the company's Chatree Gold Mine in the company.
