K92 ships first con­cen­trate from Kora for off­take deal

Stockwatch Daily - - MINES & METALS - Mr. John Lewins re­ports

K92 MIN­ING Inc. has shipped the first con­cen­trate from Kora pro­duc­tion to the Port of Lae, pur­suant to a new off­take agree­ment, with the pro­vi­sional pay­ment (90 per cent of to­tal value of ship­ment) re­ceived by K92.


• Ships first 146 tonnes of Kora con­cen­trate to Port of Lae with pay­ment for this con­cen­trate re­ceived by K92 from off­taker;

• New off­take agree­ment in­cludes pro­vi­sion for off­taker to pro­vide $15-mil­lion (U.S.) fi­nanc­ing for Kora ex­pan­sion;

• First 4,000 tonnes of Kora ma­te­rial pro­cessed in Oc­to­ber re­sulted in the pro­duc­tion of 163 tonnes of con­cen­trate at 143 grams per tonne gold, 196 g/t sil­ver and 18.4 per cent cop­per con­tain­ing 750 ounces of Au, 1,030 ounces of Ag and 66,000 pounds of cop­per

The new off­take agree­ment in­cludes a pro­vi­sion for fi­nanc­ing of $15-mil­lion (U.S.) 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.

The $15-mil­lion (U.S.) 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 (U.S.) to tar­get an ex­pan­sion of the min­ing and pro­cess­ing rate to a level en­vi­sioned in the pre­lim­i­nary eco­nomic as­sess­ment re­ferred to else­where in this news re­lease.

K92’s chief ex­ec­u­tive of­fi­cer, John Lewins, stated: “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.”

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 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 drill hole 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 10 fol­low-up holes drilled since, in this dis­cov­ery

area, have in­ter­sected gold, sil­ver and cop­per min­er­al­iza­tion.

We seek Safe Har­bor.

Erika Flores con­densed this news re­lease (erikaf@stock­watch.com).

Robert Stu­art An­gus, Mark Price Ea­ton, Saurabh Handa, John D Lewins, Bryan James Rees Slusarchuk, John Ian Stalker, Gra­ham Whee­lock

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