Kainantu area miner K92 Mining Inc. has sent the first shipment of concentrate from its Kora production to the Port of Lae, pursuant to a new offtake agreement, with the provisional payment (90% of total value of shipment) received by K92.
The new offtake agreement includes a provision for funding of US$15 million in non-dilutive financing from one of the world’s largest commodity trading groups, to secure the long term offtake for production from the Kora Deposit (“Kora”).
The $15 million in financing is subject to a number of closing conditions, which the two parties have commenced pursuing. Prior to the removing of these conditions, K92 will ship Kora concentrate under an agreement with interim provisions facilitating the same. K92 anticipates utilizing the $15 million to target an expansion of the mining and processing rate to a level envisioned in the Preliminary Economic Assessment referred to below.
“This offtake agreement announced today allows for immediate shipping of concentrate that K92 is producing from Kora. At the same time, it provides a potential path for a non-dilutive financing to target significant production expansion. The offtaker is one of the world’s largest commodity traders, is very active in Papua New Guinea and familiar with K92 and our operations. The discovery of the Kora extension area adjacent to our current mining area has been game-changing for the company and we are continuing to drill and mine in this area,” K92 CEO, John Lewins, said.
The current Kora/Eutompi inferred resource, as defined by previous drilling to date, is 4.36 million tonnes at a grade of 7.3 g/t Au, 35 g/t Ag and 2.23 per cent Cu, or 11.2 g/t gold equivalent (see Table 1.0) and is open for expansion at depth and in both directions along strike.
K92 has previously announced and has been following up on the discovery of an extension of Kora, made in K92 drillhole KMDD0009, which recorded an intersection of 5.4 metres at 11.68 g/t gold, 25.5 g/t silver and 1.33 per cent copper 500 metres to the north from the closest point of the currently defined Kora deposit inferred resource. All ten follow-up holes drilled since, in this discovery area, have intersected gold, silver and copper mineralisation.