K92 Mining announces an increase of its previously announced non-brokered private placement from $5 million to up to $12.5 million with proceeds to boost development of the Kainantu project in Papua New Guinea.
K92 says the proceeds are intended to be used for general corporate purposes and to give the company enhanced optionality when completing the underground incline drive from Irumafimpa to Kora, with drill testing along the way.
The company says the restart of operations at Irumafimpa is on schedule and on budget. The crusher and mill feed system is fully commissioned and the mill and float plant are in the final phase of load commissioning.
The incline drive will allow the previously undrilled areas between the Irumafimpa and Kora ore bodies to be drill tested for potential expansion of the existing resource as well as to upgrade the known deposit at Kora.
K92 has engaged Australian Mine Design and Development Pty Ltd of Brisbane, Australia, to complete a scoping study for the development of the Kora deposit.
Kora has an inferred resource of 4.42 million tonnes at a grade of 7.1 grams/tonne (g/t) gold, 34.6 g/t silver and 2.2% copper. It is open for expansion and strongly mineralized at the extent of drilling.
In regards to the financing K92 may engage certain finders to assist in locating investors and intends to pay each finder a fee equal to 7% of the gross proceeds received from investors identified by the finder, payable in cash and/or offered shares, and issue warrants to purchase offered shares equal to 7% of the aggregate number of offered shares purchased by investors identified by the finder.
The financing is intended to be completed during July, 2016 and is subject to certain conditions, including the approval of the TSX Venture Exchange.
Meantime, K92 has appointed Gavin Ferguson to the position of general manager - Kainantu Gold Mine and Peter du Plessis as executive director - external affairs, projects and services.
Mr Ferguson has more than 25 years’ experience in the mining industry and has worked in Africa, Australia and the Asia Pacific. He commenced his career with Anglogold Ashanti in South Africa and has extensive experience in the successful development and operations of underground gold and platinum mines, having also worked for Anglo Platinum, Platinum Australia, Brandrill and Planet Mining as well as being principal advisor - underground mines with Newmont Asia Pacific.
Peter du Plessis joined K92 Mining in March 2015 as the general manager - Kainantu Gold Mine. He has worked continuously in Papua New Guinea since 2002, including time spent as the general manager of the Tolukuma Gold Mine and more recently as general manager of the Simberi Gold Mine.