The Kainantu gold mine is located in the Eastern Highlands Province of Papua New Guinea, approximately 180 km west-northwest of Lae. Credit: K92 Mining Inc.
The base amount of the loan facility has increased from $100 million to $120 million, with an accordion feature to increase the maximum amount to $150 million. The conditions precedent for advance of the first $100 million facility have been satisfied, while the condition for the remaining $20 million is expected to be satisfied later this month.
In addition to the credit facilities, the parties have signed a new offtake agreement, under which Trafigura will buy 100% of K92 PNG’s copper/gold concentrates produced at Kainantu. The new deal again replacesThe upsized loan, said K92 CEO John Lewins, is “an important financial de-risking milestone” for delivering the Stage 3 and 4 expansions of the Kainantu gold mine and transforming the company into a Tier 1 mid-tier producer.