AEMA, coalition launch legal challenge to BLM Conservation and Landscape Health Rule
The American Exploration & Mining Association was joined by a coalition in filing a challenge last Friday in the Wyoming district court.
K92 Mining (TSX: KNT) announced on Wednesday it has entered into two separate credit facilities with Trafigura that replace and expand on its September 2023 loan from the commodity trader.
The base amount of the loan facility has increased from $100 million to $120 million, with an accordion feature to increase the maximum amount to $150 million. The conditions precedent for advance of the first $100 million facility have been satisfied, while the condition for the remaining $20 million is expected to be satisfied later this month.
The new facilities, according to K92, would further bolster its strong financial position. As of the end of Q1 2024, the miner, which operates the Kainantu mine in Papua New Guinea, had $73.4 million in cash and treasury bills and no debt.
In addition to the credit facilities, the parties have signed a new offtake agreement, under which Trafigura will buy 100% of K92 PNG’s copper/gold concentrates produced at Kainantu. The new deal again replaces a September 2023 agreement between the parties, which did not come into effect.
The upsized loan, said K92 CEO John Lewins, is “an important financial de-risking milestone” for delivering the Stage 3 and 4 expansions of the Kainantu gold mine and transforming the company into a Tier 1 mid-tier producer.
The Kainantu operation — with a current capacity of 500,000 tonnes per annum (tpa)– is targeted for two more expansions that would see its capacity rise to 1.7 million tpa and mine life extended to 11 years at the final stage.
Annual production from Stages 3 and 4 is expected to reach 290,000 oz. and 470,000 oz. of gold-equivalent respectively, effectively placing K92 on track for Tier 1 production.
