K92 Mining Signs US$12.5 Million Agreement to Eliminate Contingent Payment with Barrick GOLD Corporation
Suite 488 – 1090 West Georgia Street
Vancouver, British Columbia
Canada V6E 3V7
Telephone: +1 (604) 687-7130
Facsimile: +1 (604) 608-9110
NEWS RELEASE
K92 MINING SIGNS US$12.5 MILLION AGREEMENT TO ELIMINATE
CONTINGENT PAYMENT WITH BARRICK GOLD CORPORATION
Vancouver, BC, July 17, 2019 - K92 Mining Inc. (“K92” or the “Company”) (TSX-V: KNT;
OTCQX: KNTNF) is pleased to announce that K92 and Barrick Gold Corporation ( “Barrick”),
through its wholly-owned subsidiary, have entered into an amendment agreement (“Amendment
Agreement”) amending the share sale agreement dated June 11 , 2014 (“Original Agreement”).
Under the amended terms, K92 will provide Barrick with a cash payment of US$12,500,000 within
60 days from the date of the Amendment Agreement, to eliminate the contingent payment
arrangement under the terms of the Original Agreement which continued until March 6, 2025 (refer
to K92’s consolidated interim financial stat ements for the three months ended March 31. 2019,
filed on SEDAR for information on the contingent payments under the Original Agreement).
John Lewins, K92 Chief Executive Officer and Director, state d, “This is, I believe, a very good
outcome for both companies. From the perspective of K92 this addresses a significant impediment
to K92 being able to fully implement its exploration and development plans for the Kainantu Gold
Mine, while from the Barrick perspective it brings certainty to the realization of further value from
the sale process.
The amendment agreement also reflects the commitment that both companies have to Papua New
Guinea and the growth of its mining industry, which will benefit from our exploration activities
and the expansion of the Kainantu Mine.”
ON BEHALF OF THE COMPANY,
John Lewins, Chief Executive Officer and Director
For further information, please contact Investor Relations 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.
2
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward -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 believes, expects
or anticipates will or may occur are forward-looking information, including statements regarding
the realization of the preliminary economic analysis for the Kainantu Gold Mine, expectations of
future cash flows, the proposed plant expansion, potential expansion of resources and the
generation of further drillin g results which 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 financing, the receipt of regulatory approvals, environmental risks, title
disputes, failure of plant, equipment or processes to o perate as anticipated, accidents, labour
disputes, claims and limitations on insurance coverage and other risks of the mining industry,
changes in national and local government regulation of mining operations, 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.