K92 investors see overhang gone as good results continue to flow
By: Kevin Silva
K92 Mining Inc. (K92) (TSX.V: KNT), operators of the Kainantu Gold-Copper project in Papua New Guinea, have supplied investors with a lot of good news flow in recent weeks. Positive updates on production, expansion and exploration have been issued, although the share price has been relatively non-responsive.
Part of the reason for that may be explained by the company’s November 21, 2017 News Release “K92 Reports on Warrant Exercises and Warrant Expiration” that describes the exercise and expiry of a number warrants. As of May 20, 2016, K92 had 22,136,890 warrants exercisable at 50 cents outstanding. The last of these warrants expired on November 20, 2017. Prior to the expiration date, a cumulative total of 16,437,048 warrants were exercised for total proceeds to K92 of $8,218,524. This cumulative total includes in excess of more than $2-million exercised during the last 10 days of eligibility.
K92 President, Bryan Slusarchuk, notes, “While the injection of capital via these warrant exercises is welcome, we may have seen some selling pressure in the final days prior to expiration. With all of the warrants priced at $0.50 now exercised or expired, I would expect that the market may start to more appropriately reflect the strong fundamental progress on the ground. With two drill rigs operating from underground set ups, and with a third more powerful drill rig having recently arrived on site and currently being commissioned, I would expect a lot of news flow in the coming days and weeks regarding both production and exploration.”
Recently, K92 announced more results related to follow up on the discovery of the Kora extension area. Drill hole KMDD0024 recorded 11.5 m at 7.11 grams per tonne gold, 12 g/t silver, and 0.32 per cent copper (7.76 g/t gold equivalent (AuEq) plus 5.95 m at 5.23 g/t Au, 19 g/t Ag, and 1.97 per cent Cu (8.50 g/t AuEq). The company also noted, within their November 15, 2017 News Release “K92 Announces More High-Grade Kora Exploration Drill Results and Ongoing Development of Kora Northern Extension” that development along strike now extends beyond 120 metres with mined grades averaging approximately 6.5 g/t Au and 1 per cent Cu.
In addition, K92 has continued to develop along the strike of the Kora lode with a 3.5-to-four metre by four metre drive in a northerly and southerly direction, and has now mined over 7,000 tonnes of material at an average grade of approximately 6.5 g/t Au and 1 per cent Cu. This material is being treated through the process plant on a continuing basis, producing a copper-gold flotation concentrate.
John Lewins, K92 CEO and Director, states, “The ongoing results from the development along the Kora lode and from the diamond drilling program have continued to build our confidence in the quality and continuity of this Northern Extension of Kora. We plan not only to continue to mine along strike on the current level, but to develop drives along strike on two upper levels, which will also allow stoping to commence in early 2018.”
K92 trades on the TSX Venture under the symbol KNT, in the United States with KNTNF and in Germany 92K.