Kainantu Resources Ltd (TSX-V:KRL) has filed its second interim results for the period ending June 30, 2021, which, given the company’s transition to a calendar reporting cycle, were presented for a seven-month period.
In the results statement, Matthew Salthouse, CEO of Kainantu Resources commented: “KRL is pleased to report further progress during the period and has delivered against the early stage milestones set on listing in December 2021; with the consolidation of rights to explore in the world-renowned Kainantu region and definition of three clear gold prospects at KRL South (with high-grade gold sample results reported at East Avaninofi)."
"The signing of definitive agreements to acquire the highly prospective May River Copper-Gold Project also demonstrated KRL’s ability to develop and execute value accretive corporate initiatives. The Company expects to provide further updates on exploration efforts in the near future," he added.
READ: Kainantu Resources set to acquire May River project in Papua New Guinea’s copper and gold district
The figures showed a sound closing cash position of $1.64 million after raising $2.94 million during the 7 month period, with cash used in operating activities of $0.68 million (inclusive of transaction costs and the repayment of earlier working capital loans) and net investing cash outflows (inclusive of exploration expenditure) were $0.61 million.
Kainantu Resources reported a net loss for the seven months of $0.94 million (inclusive of listing and equity compensation costs) and a significantly lower loss for the 4 months to June 30, 2021, of $0.15 million. The company's exploration and evaluation activities for the 7 month period were $0.76 million, which has been capitalised.
Key aspects to report over the period included:
- Ongoing exploration success at the company’s projects in Kainantu
- Execution of a value accretive corporate initiative for the May River Copper-Gold Project
- Commencement of trading on the FSE, in addition to the TSX-V, providing increased exposure to European capital markets
- The appointment of Graeme Duncan as chief operating officer, bringing 45 years of experience leading mining project development in the Asia-Pacific region.
- Ongoing community support as evidenced by the signing of a long-term access agreement with key stakeholders at KRL North, in addition to continued engagement with the national level government
Kainantu Resources is an Asia-Pacific-focused gold mining company with two highly prospective gold projects, KRL South and KRL North, in a premier mining region, the high-grade Kainantu Gold District of PNG.
Both of Kainantu’s projects show potential to host high-grade epithermal and porphyry mineralisation, as seen elsewhere in the district. KRL has a highly experienced board and management team with a proven track record of working together in the region; and an established in-country partner.
Contact the author at jon.hopkins@proactiveinvestors.com