10 Finance Report Financing Arrangements Corporate loan facility Convertible loan facility Restructure of corporate loan and convertible loan facilities Multi-currency and syndicated loan facilities Financial Position Dividends Convertible revolving credit facility Kingsgate has a three year secured loan facility  with Investec which was amended during the  year. The amended facility has a limit of $40  million (30 June 2012: $50 million), of which $20  million has been drawn down as at 30 June 2013  (30 June 2012: $40 million).  The Group also has a three year $25 million  Convertible Revolving Credit Facility available.  As at the date of this report the facility is  undrawn. Under the terms of this facility,  Kingsgate has the option of repaying any funds  drawn down under the facility through either  cash or by issuing ordinary shares. It is intended  that this facility will be utilised during the 2014  financial year for corporate and working capital  purposes. It is the current intention of the  company to repay any cash drawdown under the  facility by the issuance of fully paid ordinary  shares which would rank parri pasu with all  existing ordinary shares, although this position  will be reviewed at the appropriate time. The  number of shares has not yet been determined  and they will be issued at a 2.5% discount to  VWAP over a period by reference to the draw  down date. Shareholder approval is not required. Kingsgate has a five year A$35 million convert- ible loan facility with Investec entered into in a  prior period to provide funding for the Bowdens  acquisition. Kingsgate has the option to make a  prepayment against the facility with an issue of  Kingsgate shares. As indicated previously in the Preliminary Final  report, at balance date it was the Group’s inten- tion to restructure and amalgamate these  facilities in the next financial year. This relates to  the potential for completion of the Initial Public  Offering (“IPO”) of Akara on the Stock Exchange  of Thailand and the updated mine plan for  Challenger. Any restructure would optimise the  Group’s anticipated balance sheet liquidity and  operational cash flows. Accordingly, the Group  classified the total amount drawn down under  these facilities of $55 million as a current liability  at 30 June 2013. Subsequent to the end of the financial year, the  Group received from its lenders a credit  approved term sheet (subject to formal docu- mentation) for the restructure of the corporate  loan and convertible loan facilities. Following  completion of the restructure the total amount  outstanding will be reduced to $40 million. This  loan will be provided through a single senior  corporate facility which will consist of two  tranches: Kingsgate’s Thai operating subsidiary, Akara,  established a six year amortising multi-currency  loan facility equivalent to US$125 million (fully  drawn as at period end) and an additional Thai  Baht denominated working capital facility  equivalent to US$15 million (undrawn as at year  end) during the period. The proceeds from these  borrowings were used to fully repay the  outstanding balance on the US$100 million Baht  denominated syndicated loan facility in exist- ence at the beginning of the period as well as to  repay part of the corporate loan facility noted  above.  Shareholders’ equity at 30 June 2013 was $474  million (2012: $776 million). The decrease of  $302 million reflects the year’s loss together  with dividends paid. No final dividend has been declared for the year  ended 30 June 2013. An interim dividend declared for the half-year  ended 31 December 2012 of 5 cents per fully  paid share was paid on 12 April 2013. A final dividend declared for the year ended 30  June 2012 of 10 cents per fully paid share was  paid on 1 October 2012. 〉 Tranche one will be a $25 million Akara Pre  IPO Bond with a maturity date of 31 July  2015. The current intention is for this  tranche to be repaid as part of the Akara IPO,  although at Kingsgate’s election repayment  can be made by either cash or in Kingsgate’s  shares. 〉 Tranche two is an amortising facility with $5  million to be repaid during the 2014 financial  year and the balance of $10 million repaid  during the 2015 financial year. www.kingsgate.com.au