K92 first production ready for shipment

Business

THE K92 Mining Inc says the first concentrate from the Kora production in Eastern Highlands has been transported to Lae to be shipped overseas.
This is pursuant to a new off-take agreement, with the provisional payment (90 per cent of total value of shipment) received by K92.
According to the company, the new off-take agreement included a provision for a funding of US$15 million (K47.04 million) in non-dilutive financing from one of the world’s largest commodity trading groups, to secure the long-term off-take for production from the Kora Deposit.
The financing is subject to a number of closing conditions, which the two parties have started pursuing.
Prior to the removing of these conditions, K92 will ship the Kora concentrate under an agreement with interim provisions facilitating the same.
K92 expects to use the US$15m to target an expansion of the mining and processing rate to a level envisioned in the preliminary economic assessment.
K92 chief executive John Lewins said the off-take agreement “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,” he said.
“The off-taker 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 Mining has begun gold production from the Irumafimpa gold deposit, which together with the Kora gold deposit, is part of the company’s Kainantu gold project located in the Eastern Highlands.
Kora remains open for expansion in every direction and strongly mineralised at the extent of all drilling.