VANCOUVER, BC, Jan. 12,
2023 /CNW/ - Kainantu Resources Ltd. (TSX-V: KRL)
(FSE: 6J0) ("KRL" or the "Company"), the Asia-Pacific focused gold mining company, is
pleased to announce the filing of a Technical Report entitled "Kili
Teke Cu-Au Project, Papua New
Guinea" with an effective date of January 12, 2023 (the "Technical Report"). The
report relates to the Company's proposed acquisition from
Harmony Gold (PNG) Exploration
Limited ("Harmony") of the Kili Teke project, initially disclosed
on April 6, 2022.
The Technical Report was authored by Independent Qualified
Person, Mr. Graeme Jon Fleming of
GJF Geological Services who is a Qualified Person as defined by
National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101"). The report is available in the Kili
Teke Project page on the Company's website
(https://kainanturesources.com/projects/kili-teke-project/) and
under the Company's profile on SEDAR at www.sedar.com.
Highlights from the Kili Teke
Technical Report:
- The most recent mineral resource estimate ("MRE") for Kili Teke
was completed by Harmony in 2017. The estimate detailed an Inferred
Mineral Resource of 237Mt @ 0.34% Cu,
0.24g/t Au and 168ppm Mo, for a total of 802kt of Cu, 1.81Moz of Au
and 40kt Mo (at a 0.2% Cu cut-off). This has been confirmed and
restated in the current Technical Report.
- The MRE does not include skarn mineralisation into the resource
which is expected to increase the Cu and Au grades by 5% and 4%,
respectively, and to increase the respective metal contents by 11%
and 10% – representing significant upside potential.
- KRL has conducted a preliminary mining study and identified the
opportunity to upgrade the open-pittable resource by infill
drilling. KRL believes that an open-pit mine could generate robust
economic returns if more high-grade mineralisation can be
delineated with the upper reaches of the deposit. The excluded
skarn material represents a clear target for future infill
drilling.
Matthew
Salthouse, CEO of KRL, commented:
"The finalisation of the Technical Report marks a significant
step forward and fulfilment of one of the few remaining conditions
precedent for KRL to acquire the Kili Teke project. KRL expects to
complete its current capital raise in the near future. Once
complete and payment made, the only conditions remaining for the
completion of the transaction are local regulatory approvals and
the transfer of certain rights."
Kili Teke Acquisition
Background
KRL announced the acquisition of the Kili Teke project from
Harmony Gold (PNG) Exploration
Limited, a wholly-owned subsidiary of the Harmony Gold Mining
Company Limited of South Africa,
on the following terms (see KRL press release, dated April 6, 2022), as follows:
- Initial cash consideration of US$1
million, payable in two instalments: US$500,000 on closing, in respect of which the
Company has advanced a refundable deposit of US$100,000, and US$500,000 on receipt of post-closing regulatory
approvals (expected in later in 2023);
- KRL intends to work towards a Preliminary Economic Assessment
("PEA"), then a Feasibility Study. If KRL views the Project
positively at each step, KRL to make further payments to Harmony of
US$3 million and US$4 million respectively;
- KRL to pay Harmony a 1.5% net smelter royalty from future mine
revenue; and
- Harmony entitled to become a strategic investor in KRL, with
Harmony to be issued warrants equal to 9.9% of the issued share
capital of KRL on closing (with each warrant exercisable at
C$0.28 per share).
Private Placement
KRL announces that 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 has been extended up to January
24, 2023.
Pursuant to the closing of 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 before
January 24, 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/
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:
closing of the second tranche of the Offering, use of proceeds from
the same; the ability of the Company to close the acquisition of
the Kili Teke project; future Cu and Au grades and metal content in
the mineral resource estimates; potential upgrades to the
open-pittable resource; formulation of plans for drill testing; the
success related to any future exploration or development programs
and potential economic returns. 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.