Kainantu Resources Ltd (TSX-V:KRL) (KRL) has released its annual and fourth-quarter results for the fiscal year ending December 31, 2021, which showed the company continuing to manage its balance sheet and capital resources prudently.
The Asia-Pacific-focused junior gold mining company said it closed the year with cash of US$0.65 million, with total cash outflows of US$0.45 million during the quarter.
"The company has successfully executed initiatives over the last 12 months to build a portfolio of projects, all with material value accretive potential,” Matthew Salthouse, the CEO of KRL, said in a statement.
“In addition, significant operational progress has also been made at both KRL North and KRL South, all in the context of a diligently managed balance sheet," he added.
READ: Kainantu Resources announces acquisition of Kili Teke gold-copper project in PNG from Harmony Gold
KRL said the results have been presented for a 13-month period given the company's transition to a calendar reporting cycle.
It noted that expenditure on exploration and evaluation activities for the 13 months totalled US$1.45 million, which has been capitalised, with additions of US$0.29 million for the quarter.
Subsequently, the company posted a net loss of US$1.78 million, inclusive of $0.98 million for listing and equity compensation costs, while the loss for the quarter was US$0.67 million, with listing and equity compensation costs accounting for $0.41 million.
During the year, KRL completed an oversubscribed private placement in two tranches on January 4 and 21, 2021, totalling C$2.77 million, which CEO Salthouse said was evidence there is appetite “to support the company”.
Additionally on April 6, 2022, KRL announced it had entered into a definitive agreement with Harmony Gold (PNG) Exploration Limited, a wholly-owned subsidiary of Harmony Gold Mining Company Limited, to acquire 100% ownership of the Kili Teke Gold-Copper Project.
“The definitive agreement with Harmony also demonstrates the company's ability to enter into value-accretive acquisition in the region with highly regarded industry participants," Salthouse added.
KRL has four highly prospective gold-copper projects located in premier mining regions in PNG: the Kili Teke Project, KRL South, KRL North, the May River Project.
Both KRL North and KRL South show potential to host high-grade epithermal and porphyry mineralisation, while the May River project is in close proximity to the world-renowned Frieda River Copper-Gold Project, with historical drilling indicating the potential for significant copper-gold projects.
Contact the author at jon.hopkins@proactiveinvestors.com