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Kingsgate Consolidated Limited Quarterly Report For the period ending 30 June 2021 KEY ISSUES ▸ Kingsgate Consolidated Limited ( “ Kingsgate " or the " Company " ) announced on 30 June 2021 that it has signed a non - binding Letter of Intent ( “ LOI ” ) with TSXV listed TDG Gold Corp ( " TDG ” ) outlining terms for the acquisition of the Company's Nueva Esperanza advanced gold - silver exploration and development project , located in the Maricunga Belt of the Atacama Region of Northern Chile . ▸ The total value of the deal is approximately A $ 69.1 million¹ and is a combination of cash and equity , that will both strengthen Kingsgate's balance sheet and , importantly , retain ongoing exposure to the gold and silver markets . ▸ The key details of the deal are as follows : • • C $ 25 million cash payable to Kingsgate upon completion of the transaction ; Kingsgate will be issued 14.0 % of TDG's outstanding common shares calculated on a post - closing basis ( inclusive of any shares issued in a concurrent financing and with an option to increase the holding up to 19.9 % ) ; • C $ 6.25 million is payable to Kingsgate within three months of completion of a Definitive Feasibility Study ; • A payment of C $ 5 million or 10 million TDG shares , at their discretion , to be issued at the point of a construction decision ; • A payment of C $ 5 million or 10 million TDG shares , at their discretion , at the one - year production anniversary ; • A payment of C $ 8.75 million at the two - year production anniversary ; and Kingsgate will have a representative on the TDG Board . TDG is well advanced in its due diligence process and both parties are now progressing the legally binding agreement which , in addition to requisite due diligence , requires Board approval and completion by TDG of a financing of at least C $ 35 million . TDG is in the process of completing this financing , however , there can be no guarantee that the transaction will proceed . On 8 July 2021 , TDG reported a 43-101 mineral resource estimate for Nueva Esperanza , which confirmed the historical resources of the project . Kingsgate remains corporate debt free . ▸ Cash at 30 June 2021 totalled A $ 9.98 million . Kingsgate would once again like to reassure shareholders that there are no plans to finance the Company via a capital raising . ▸ Since the end of the quarter , Kingsgate has been conducting a strategic share buyback to help enhance shareholder value . At the date of this report , Kingsgate has purchased and cancelled approximately 533,399 shares at a total consideration of $ 433,142 or 81.2 cents per share . Kingsgate Consolidated Limited AUSTRALIA THAILAND CHILE Calculated on an AUD - CAD exchange rate of A $ 1 : 00 is equal to C $ 0.93 as at 26 July 2021 .