K92 ships first concentrate from Kora for offtake deal
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 (firstname.lastname@example.org).
Robert Stuart Angus, Mark Price Eaton, Saurabh Handa, John D Lewins, Bryan James Rees Slusarchuk, John Ian Stalker, Graham Wheelock
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