The Kainatu mine, in Papua New Guinea
Gold miner K92 Mining has announced two new credit facilities with Trafigura to replace a previous loan, upsizing its facility from $100-million to $120-million.
Under an accordion feature, the company, which operates the Kainatu gold mine, in Papua New Guinea, can increase the aggregate amount to $150-million.
“The closing and upsizing of the loan to up to $150-million is an important financial derisking milestone for delivering the Stage 3 and 4 expansions which will transform K92 and the Kainantu gold mine into a tier-one midtier producer,” said K92 CEO John Lewins.
K92 and Trafigura also entered into a new offtake agreement for the purchase by the commodity trader of all the copper and gold concentrate produced by the Kainantu mine.
The new agreement replaces the amended offtake agreement of September 2023, which did not come into effect.
We would also like to acknowledge our relationship with Trafigura, which has been our offtake counterpart since the start of operations at the Kainantu gold mine. These agreements further reinforce our strong relationship. The new offtake agreement also secures long-term competitive terms and provides security and confidence in our income from the sale of our concentrate product,” said Lewins.