South Pacific Metals Corp. - Interim Injunction against K92 Mining and the MRA is Upheld by National Court of Papua New Guinea
South Pacific Metals Corp. - Interim Injunction
against K92 Mining and the MRA is Upheld by
National Court of Papua New Guinea
Vancouver, British Columbia--(Newsfile Corp. - September 16, 2025) -
South Pacific Metals Corp.
(TSXV: SPMC) (OTCQB: SPMEF) (FSE: 6J00) ("
SPMC
" or the "
Company
") reports that the National
Court Justice of Papua New Guinea ("
National Court
") has has upheld the interim injunction previously
obtained by SPMC's wholly-owned subsidiary, Kainantu Resources Limited ("
KRL
"), in its proceedings
against K92 Mining Limited ("
K92 Mining
") and the Mineral Resources Authority ("
MRA
") in relation to
Exploration Licence EL2558.
Scope of the Injunction
The injunction restrains K92 Mining and the MRA from actions that interfere with KRL's exclusive rights
over EL2558, including:
Restraining K92 Mining
from entering into or interfering with the EL2558 licence area, including
conducting sterilization drilling or undertaking infrastructure development (such as the proposed
tailings storage facility or solar farm).
Preventing the MRA
from accepting or processing any K92 Mining applications for leases or
tenements over the EL2558 area.
Following an in-depth review of submissions, the National Court affirmed SPMC's position and ordered
that the injunctive relief remain in place until further order of the National Court.
The National Court also
awarded costs in favour of SPMC.
The National Court has further asked parties whether they would like
to go to nonbinding mediation or have the issue go to Trial.
If this issue ends up in Trial, the primary
issue to be decided is the interpretation of the Mining Act, whether or not SPMC (through its subsidiary
KRL) has the exclusive right to apply for a Lease for Mining Purposes ("
LMP
") over its owned
Exploration Licence.
K92 Mining argues to the contrary that it has a right to apply for an LMP over land
that is the subject of KRL's exploration tenement.
Background and Objective
SPMC initiated legal action after repeated instances of what it believes to be trespass and interference
by K92 Mining on EL2558.
SPMC's objective is to safeguard its legal rights, maintain the integrity of its exploration programs, and
ensure that the EL2558 licence area remains free from unauthorized activity.
EL2558 is a key
exploration focus for the Company and should exploration prove non-economic, represents a potential
site for tailings storage.
South Pacific Metals will continue to vigorously protect its rights and interests in EL2558 and will provide
further updates as developments occur.
About South Pacific Metals Corp.
South Pacific Metals Corp. is an emerging gold-copper exploration company operating in the heart of
Papua New Guinea's proven gold and copper production corridors.
With an expansive 3,100 km² land
package and four transformative gold-copper projects contiguous with major producers K92 Mining,
PanAust and neighbouring Barrick/Zijin, new leadership and experienced in-country teams are
prioritizing thoughtful and rigorous technical programs focused on boots-on-the-ground exploration to
prioritize discovery across its portfolio projects: Osena, Anga, Kili Teke, and May River.
Immediately flanking K92 Mining's active drilling and gold producing operations to the northeast and
southwest, SPMC's Anga and Osena Projects are located within the high-grade Kainantu Gold District -
each having the potential to host similar-style lode-gold and porphyry copper-gold mineralization as that
present within K92 Mining's tenements.
Kili Teke is an advanced exploration project situated only 40 km
from the world-class Porgera Gold Mine and hosts an existing Inferred Mineral Resource with multiple
opportunities for expansion and further discovery.
The May River Project is located adjacent to the world-
renowned Frieda River copper-gold project, with historical drilling indicating potential for a significant,
untapped-gold mineralized system.
SPMC common shares are listed on the TSX Venture Exchange
(TSX.V: SPMC), the OTCQB Marketplace (OTCQB: SPMEF) and Frankfurt Stock Exchange (FSE:
6J00).
For further information please contact:
Michael Murphy, Executive Chair
or
Investor Relations
South Pacific Metals Corp.
Tel: +1-604-653-9464
Email:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Disclaimer and Forward-Looking Information
Statements contained in this release that are not historical facts are forward-looking statements that
involve various risks and uncertainty affecting the business of SPMC.
In making the forward-looking
statements, SPMC has applied certain assumptions that are based on information available to the
Company, including SPMC's strategic plan for the near and mid-term.
There is no assurance that
such information will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements.
Forward-looking statements may involve various risks and
uncertainties affecting the business of the Company.
These forward-looking statements can generally
be identified as such because of the context of the statements, including such words as "believes,"
"anticipates," "expects," "plans", "may", "estimates", or words of a similar nature.
Forward-looking
statements or information in this news release relate to, among other things: the outcome of a further
order from the National Court, whether the parties will determine whether to pursue mediation or
proceed to trial and the Company's upcoming exploration program.
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, regulatory, or other unforeseen
uncertainties and contingencies.
These assumptions include, without limitation: success of the
Company's projects, prices for metals 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.
Accordingly, readers should not place undue
reliance on forward-looking information.
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, the Company's 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 the Company's filings with Canadian securities regulators on
SEDAR+ (
www.sedarplus.ca
).
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.
Mineralization hosted
on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the
Company's property.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/266601