VANCOUVER, BC, Nov. 29,
2022 /CNW/ - Kainantu Resources Ltd. (TSXV: KRL)
(FSE: 6J0) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to report the filing of its interim results for the nine
months ending September 30, 2022, a
copy of which is available for review in the "Investors" section of
the Company's website.
Key aspects to report over the period include the following
(with financial analysis stated in USD unless otherwise noted):
Financial Update
- Prudent management of capital resources continued in Q3 2022,
during the 9 months ended September
30:
-
- capitalised expenditure on exploration and evaluation
activities totalled $1.78 million,
compared to $1.16 million for the
period in 2021, primarily due to expanded exploration activities,
including a significant airborne geophysical survey over our
properties adjacent to K92 Mining;
- as at September 30 cash and
receivables totalled $0.32 million
(or C$ 0.44 million) with
$0.18 million of non-trade
receivables. Subsequent to the reporting date on November 3, 2022, the Company completed the first
tranche of the placement, securing C$1.70
million in funding significantly increasing the cash
balance.
- cash used in operating activities was $0.71 million and $1.65
million for investing activities and net inflows from
financing of $1.90 million; and
- the loss through for the period was $0.78 million a reduction of $0.33 million compared to 2021 which included
non-recurring one-off listing expense and non-cash share-based
payments.
Business Update
- At the Ontenu prospect at KRL South, three high priority
targets were identified, based on structural, geochemical and
geophysical signatures, with a focussed, grided soil sampling
programme underway;
- The Tirokave area of interest has been expanded to include an
additional prospect at Mt. Yungateia (with further analysis being
finalised from the sampling at East Avaninofi and Yaoro Ridge
prospects);
- At KRL North a cluster of soil samples around the ring feature
in the southern corner of EL2558 support the potential for
continuity of high grade mineralisation from the Bilimoia gold
field within K92;
- At May River, field work at the Mountain Gate prospect has
identified a number of potential targets for further studies to
define epithermal and porphyry styes of mineralisation; and
- Closing events are continuing in relation to the acquisition of
the Kili Teke project, including preparation of an NI 43-101
Technical Report to verify the existing SAMREC resource
(237 Mt @ 0.34% Copper (=0.8Mt Cu),
0.24g/t Gold (=1.8Moz Au) and 168ppm Molybdenum (=0.04Mt Mo)).
Matthew Salthouse, CEO of KRL,
commented:
"KRL is pleased to provide this update for Q3 2022, with a
number of initiatives being pursed at high grade targets inclusive
of KRL North, Ontenu and May River/Mountain Gate; in addition to
progress towards closing the Kili Teke acquisition. The
recent private placement provides ongoing funding for KRL to pursue
our value accretive projects."
Private Placement
KRL wishes to advise the non-brokered private placement (the
"Offering") for up to 22,727,273 units of the Company (each, a
"Unit") at a price of C$0.11 per Unit
for aggregate gross proceeds of up to C$2.5
million announced on October 19,
2022 is to be extended.
After closing the first tranche of the Offering on November 3, 2022, the Company has issued an
aggregate of 15,635,790 Units at a price of C$0.11 per Unit to raise gross proceeds of
C$1,719,937.
The second and final tranche of the Offering of up to an
additional approximately C$0.8
million is progressing and is expected to close on or about
January 12, 2023 and the Company will
provide an update on the Offering in due course.
Each Unit is comprised of one common share of the Company (each,
a "Common Share") and one common share purchase warrant (each, a
"Warrant"), with each Warrant being exercisable for one Common
Share at an exercise price of C$0.22
per Common Share at any time up to 36 months following the closing
date of the Offering, with each Warrant being subject to
acceleration in certain circumstances.
Qualified Person
The scientific and technical information disclosed in this
release has been reviewed and approved by Graeme Fleming, B. App. Sc., MAIG, an
independent "qualified person" as defined under National Instrument
43-101, Standards of Disclosure for Mineral Projects.
About Kainantu Resources Limited (KRL)
Kainantu Resources 'KRL' is an Asia-Pacific focused gold mining company with
three highly prospective gold-copper projects, KRL South, KRL North
and the May River Project. All projects are located in premier
mining regions in PNG. Both KRL North and KRL South show potential
to host high-grade epithermal and porphyry mineralisation, as seen
elsewhere in the high-grade Kainantu Gold District. The May River
project is in close proximity to the world-renowned Frieda River
Copper-Gold Project, with historical drilling indicating the
potential for significant copper-gold projects. KRL has a highly
experienced board and management team with a proven track record of
working together in the region; and an established in-country
partner. KRL recently executed an agreement to acquire the
Kili Teke project in the western highlands of PNG.
For further information please visit
https://kainanturesources.com/
References in this release to $ are stated in USD.
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this release.
Disclaimer and Forward-Looking Information This release
contains forward-looking statements, which relate to future events
or future performance and reflect management's current expectations
and assumptions. Such forward-looking statements reflect
management's current beliefs and are based on assumptions made by
and information currently available to the Company. All statements,
other than statements of historical fact, are forward-looking
statements or information. Forward-looking statements or
information in this news release relate to, among other things:
formulation of plans for drill testing; and the success related to
any future exploration or development programs. These
forward-looking statements and information reflect the Company's
current views with respect to future events and are necessarily
based upon a number of assumptions that, while considered
reasonable by the Company, are inherently subject to significant
operational, business, economic and regulatory uncertainties and
contingencies. These assumptions include; success of the Company's
projects; prices for gold remaining as estimated; currency exchange
rates remaining as estimated; availability of funds for the
Company's projects; capital, decommissioning and reclamation
estimates; prices for energy inputs, labour, materials, supplies
and services (including transportation); no labour-related
disruptions; no unplanned delays or interruptions in scheduled
construction and production; all necessary permits, licenses and
regulatory approvals are received in a timely manner; and the
ability to comply with environmental, health and safety laws. The
foregoing list of assumptions is not exhaustive. The Company
cautions the reader that forward-looking statements and information
involve known and unknown risks, uncertainties and other factors
that may cause actual results and developments to differ materially
from those expressed or implied by such forward-looking statements
or information contained in this news release and the Company has
made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: fluctuations in
gold prices; fluctuations in prices for energy inputs, labour,
materials, supplies and services (including transportation);
fluctuations in currency markets (such as the Canadian dollar
versus the U.S. dollar); operational risks and hazards inherent
with the business of mineral exploration; inadequate insurance, or
inability to obtain insurance, to cover these risks and hazards;
our ability to obtain all necessary permits, licenses and
regulatory approvals in a timely manner; changes in laws,
regulations and government practices, including environmental,
export and import laws and regulations; legal restrictions relating
to mineral exploration; increased competition in the mining
industry for equipment and qualified personnel; the availability of
additional capital; title matters and the additional risks
identified in our filings with Canadian securities regulators on
SEDAR in Canada (available at
www.sedar.com). Although the Company has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated, described, or intended. Investors are
cautioned against undue reliance on forward-looking statements or
information. These forward-looking statements are made as of the
date hereof and, except as required under applicable securities
legislation, the Company does not assume any obligation to update
or revise them to reflect new events or circumstances.
SOURCE Kainantu Resources Ltd.