K92 Mining Inc. Provides Community Relations Update
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 687-7130
www.k92mining.com
NEWS RELEASE
April 27, 2020 Vancouver, British Columbia
K92 MINING INC. PROVIDES COMMUNITY RELATIONS UPDATE
Vancouver, British Columbia, April 27, 2020 - K92 Mining Inc. (“K92” or the “ Company”)
(TSX-V: KNT; OTCQX: KNTNF) provides the following update on recent activity with regards
to community relations.
Last week, during the State of Emergency related to the Covid-19 pandemic, a group of disaffected
youths from the Bilimoian community blocked the haul road from the process plant to the
Company’s Kainantu Gold M ine, demanding that the access road to their villages be upgraded.
The blockage of the haul road did not halt production at the process plant but did result in mining
operations being suspended for 48 hours.
The access road in question is located many kilometres from the mine in Papua New Guinea and
its maintenance is the responsibility of local Government. It is not used by the mine ; however,
K92 had already commenced work on maintenance and upgrading of the road as one of its projects
supporting the local community. In addition, the Provincial Government has also committed funds
to upgrading the village access road. High rainfall had forced the work to be temporarily suspended
and assurances were provided that work would recommence as soon as the weather allowed.
Despite these assurances, the youths refused to leave the haul road, and the police who had been
monitoring the situation therefore moved in and arrested many of the demonstrators. During this
action, one demonstrator was injured and required hospital treatment.
While the arrests resulted in the blockade being lifted, there were concerns that the situation could
escalate and as a result, the Company took the decision to temporarily suspend all operations and
remove the majority of the workforce from site to diffuse the situation.
The situation did not escalate and following the intervention of the Bilimoian leadership through
the Bilimoia Interim Landowners Association (“BILA”); and of the local member of parliament,
the Hon Johnson Tuke, who is also the Minister for Mining, the underlying issues were resolved.
Operations are now returning to normal and at this point the Company does not believe that the
incident will have a material effect on production for the quarter.
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The Company notes that the recently announced easing of domestic travel restrictions under the
State of Emergency should also reduce the impact of the SOE on operational efficiency, allowing
more efficient movement of skilled PNG National employees to and from site.
The Company, BILA and the Minister for Mining have committed to working closely together to
ensure that there is no repeat of this type of incident. A major focus will be completing the
outstanding review of the existing Memorandum of Agreement (“MOA”), which has suffere d
repeated delays outside of the control of the Company or BILA, most recently due to the current
State of Emergency declared in response to the COVID -19 pandemic. The MOA underpins the
relationship between the Company, the Community and Government and set s out commitments
from the various parties.
About K92
K92 Mining Inc. is engaged in the production of gold, copper and silver from the Kora and Kora
North deposits of the Kainantu Gold Mine in the Eastern Highlands province of Papua New
Guinea, as well as exploration and development of mineral deposits in the immediate vicinity of
the mine. The Company declared commercial production from Kainantu in February 2018 and is
in a strong financial position with US$22 million in cash (as at December 31, 2019).
The Company commenced an expansion of the mine based on an updated Preliminary Economic
Assessment on the property which was published in January 2019. K92 is operated by a team of
mining company professionals with extensive international mine -building and operational
experience.
On Behalf of the Company,
John Lewins, Chief Executive Officer and Director
For further information, please contact David Medilek, P.Eng., CFA at +1-604-687-7130.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news
release includes certain “forwar d-looking statements” under applicable Canadian securities
legislation. Forward-looking statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors which may cause the actual results and future events to differ
materially from those expressed or implied by such forward -looking statements. All statements
that address future plans, activities, events, or developments that the Company bel ieves, expects
or anticipates will or may occur are forward-looking information, including statements regarding
the realization of the preliminary economic analysis for the Kainantu Project , expectations of
future cash flows, the planned plant expansion, production results, cost of sales, sales of
production, potential expansion of resources and the generation of further drilling results which
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may or may not occur. Forward -looking statements and information contained herein are based
on certain factors and assumptions regarding, among other things, the market price of the
Company’s securities, metal prices, exchange rates, taxation, the estimation, timing and amount
of future exploration and development, capital and operating costs, the availability of finan cing,
the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment
or processes to operate as anticipated, accidents, labour disputes, claims and limitations on
insurance coverage and other risks of the mining indus try, changes in national and local
government regulation of mining operations in PNG, and regulations and other matters.. There
can be no assurance that such statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward -looking statements. The Company disclaims any
intention or obligation to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.