K92 Mining Inc. Provides Corporate and Site Update
-- Underground mining equipment required for the restart in place onsite -- First remnant mined material scheduled to be moved from underground to ROM pad -- First load testing of rehabilitated crusher section expected to commence by the end of month
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 30, 2016) - K92 Mining Inc. ("K92 Mining" or the "Company") (TSX VENTURE:KNT) is pleased to provide a corporate and site update.
Site
K92 Mining reports that the remedial work on the main mine access (Muck Bay 9) is expected to be completed by month end, allowing full access to the upper working levels. Further, the underground mining equipment required for the restart of operations including Twin Boom Jumbo, loaders, compressor and IT are now on onsite, with additional equipment in transit or on order.
Additionally, the Company commissioned and has now received a Detailed Mine Plan for the Irumafimpa gold deposit from Australian Mine Design and Development Pty Ltd., which will guide the Company's mine restart. Initial load commissioning of the crushing section and water commissioning of the mill and flotation sections is scheduled to commence prior to the end of the month. Other improvement and enhancement work at the processing facility are under way, including the installation of a drum scrubber, which has now arrived on site ready for installation in the coming month. These actions are part of the company's business plan to enhance, improve, rehabilitate and restart mining operations within the company's Mining License 150 (as described in the Independent Technical Report, Resource Estimate and Summary of Mining Facilities, Kainantu Project, Papua New Guinea, Nolidan Mineral Consultants, Author Anthony Woodward, BSc Hons., M.Sc., MAIG, April 15, 2016 - a copy of which is available for review and has been filed on SEDAR under the Company's profile).
Ian Stalker, Chief Executive Officer, states, "The business plan developed for K92's restart of operations is being executed and is on track. We have an able team of expert mining professional's onsite and substantial surface and underground infrastructure in place as a result of the acquisition from Barrick Gold. Additionally, the processing facility enhancements and equipment purchases we set out to make during the rehabilitation phase are almost complete. We thank the local communities for their strong support and enthusiasm for the restart process and look forward to the enhanced economic opportunities and employment this project will create."
Corporate
On May 20, 2016, the Company granted a total of 7,465,000 incentive stock options to employees, officers, directors and an investor relations provider. The options were granted in accordance with the terms of the Company's stock option plan. They are exercisable at a price of CAD$0.45 per share, vest over a period of 18 months, with the initial vesting six months following the date of grant and expire on May 20, 2021.
Further, the Company has engaged Skanderbeg Capital Advisors ("Skanderbeg") to provide Investor Relations services for a 12 month term at a rate of CAD$5,000 per month plus GST, with the Company having the right to cancel the agreement at any time. The Company granted 120,000 incentive stock options to Skanderbeg at an exercise price of CAD$0.45 (included in the total amount previously noted in this News Release). These options vest over a period of 18 months, with the initial vesting six months following the date of grant and expire on May 20, 2021. Skanderbeg is based in Vancouver, British Columbia and principals are Carson Seabolt and Mario Vetro.
ON BEHALF OF THE BOARD
Ian Stalker, Chief Executive Officer and Director
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
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.
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. The material factors and assumptions include the ability of the Company to restart of mining and processing within the Company's Mining License 150; all necessary mining equipment arriving on time; initial load commissioning of the crushing section and water commissioning of the mill being successful; and that K92 will be successful in extracting any gold from its properties in Papua New Guinea. In particular, this news release contains forward-looking information relating to mining operations at the Company's properties in Papua New Guinea. 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.