Kainantu Resources Ltd (TSX-V:KRL) (KRL) told investors that its previously-announced 'transformational' acquisition of the advanced Kili Teke copper-gold project in Papua New Guinea (PNG) remains on track.
The company and Harmony Gold (NYSE:HMY) Exploration are working through the conditions for closing, including the completion of an NI 43-101 technical report and obtaining local regulatory licencing approvals in PNG.
Closing the deal also remains subject to Kainantu, at its discretion, sourcing funding of up to US$1 million. Of this, only US$500,000 is required to pay Harmony for 100% of Kili Teke in order to close the transaction. A US$100,000 deposit has been paid.
"KRL remains on track to complete the acquisition of the advanced stage Kili Teke copper-gold project," Matthew Salthouse, the CEO of KRL, said in a statement.
"With an inferred resource, 36,000 metres of drilling and exceptional gold-copper intercepts reported, there is significant scope to re-optimize Kili Teke that will drive material value for KRL. Kili Teke will be a core focus for KRL into the future."
READ: Kainantu Resources announces acquisition of Kili Teke gold-copper project in PNG from Harmony Gold
On closing, KRL said it expects to accelerate steps towards re-optimization of Kili Teke and that it is currently in discussion with technical consultancies.
On April 6 this year, the firm revealed it had struck a definitive agreement with Harmony Gold to acquire 100% of the property, which comprises exploration licence EL 2310 and sits 40 kilometres west-northwest of the Porgera gold mine.
"The project lies on the highly prospective Papuan Fold Belt, which hosts world-class projects such as Ok Tedi, Frieda River and Porgera. We look forward to exploring and developing another potential world-class project for the region," Salthouse said in April.
"This transaction moves KRL from a greenfield high potential explorer into being a resource development company with upside. For a junior to achieve this after a year of listing is a testament to the team's vision on growing KRL via accretive transactions in combination with ongoing field work."
Contact the author at giles@proactiveinvestors.com