Kainantu Resources Filing of Q3 2022 Results
Kainantu Resources Filing of Q3 2022 Results
VANCOUVER, BC
,
Nov. 29, 2022
/CNW/ - Kainantu Resources Ltd. (TSXV: KRL) (FSE: 6J0)
("KRL" or the "Company"), the
Asia-Pacific
focused gold mining company, is pleased to report the
filing of its interim results for the nine months ending
September 30, 2022
, a copy of which is
available for review in the "Investors" section of the Company's
website
.
Key aspects to report over the period include the following (with financial analysis stated in USD
unless otherwise noted):
Financial Update
Prudent management of capital resources continued in Q3 2022, during the 9 months ended
September 30
:
capitalised expenditure on exploration and evaluation activities totalled
$1.78 million
,
compared to
$1.16 million
for the period in 2021, primarily due to expanded exploration
activities, including a significant airborne geophysical survey over our properties adjacent to
K92 Mining;
as at
September 30
cash and receivables totalled
$0.32 million
(or
C$ 0.44 million
) with
$0.18 million
of non-trade receivables. Subsequent to the reporting date on
November 3, 2022
, the Company completed the first tranche of the placement, securing
C$1.70 million
in funding significantly increasing the cash balance.
cash used in operating activities was
$0.71 million
and
$1.65 million
for investing activities
and net inflows from financing of
$1.90 million
; and
the loss through for the period was
$0.78 million
a reduction of
$0.33 million
compared to
2021 which included non-recurring one-off listing expense and non-cash share-based
payments.
Business Update
At the Ontenu prospect at KRL South, three high priority targets were identified, based on
structural, geochemical and geophysical signatures, with a focussed, grided soil sampling
programme underway;
The Tirokave area of interest has been expanded to include an additional prospect at Mt.
Yungateia (with further analysis being finalised from the sampling at East Avaninofi and Yaoro
Ridge prospects);
At KRL North a cluster of soil samples around the ring feature in the southern corner of EL2558
support the potential for continuity of high grade mineralisation from the Bilimoia gold field within
K92;
At May River, field work at the Mountain Gate prospect has identified a number of potential
targets for further studies to define epithermal and porphyry styes of mineralisation; and
Closing events are continuing in relation to the acquisition of the Kili Teke project, including
preparation of an NI 43-101 Technical Report to verify the existing SAMREC resource (
237 Mt
@ 0.34% Copper (=0.8Mt Cu), 0.24g/t Gold (=1.8Moz Au) and 168ppm Molybdenum (=0.04Mt
Mo)).
Matthew Salthouse
, CEO of KRL, commented:
"KRL is pleased to provide this update for Q3 2022, with a number of initiatives being pursed at
high grade targets inclusive of KRL North, Ontenu and May River/Mountain Gate; in addition to
progress towards closing the Kili Teke acquisition. The recent private placement provides ongoing
funding for KRL to pursue our value accretive projects."
Private Placement
KRL wishes to advise 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
is to be extended.
After closing 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 on or about
January 12, 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/
References in this release to $ are stated in USD.
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: formulation of plans
for drill testing; and the success related to any future exploration or development programs. 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.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/November2022/29/c7901.html
%SEDAR: 00046178E
For further information:
Kainantu Resources, Matthew Salthouse, Chief Executive Officer (Tel: +
65 8318 8125); Callum Jones, Corporate Development & Commercial Associate, (Tel: + 61 450 969
697), Email: [email protected]
CO: Kainantu Resources Ltd.
CNW 19:00e 29-NOV-22