K92 Mining Announces Upsized Senior Secured Credit Facilities of Up to US$150 Million and Offtake Agreement with Trafigura

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[{"type":"text","content":" VANCOUVER, British Columbia, June 19, 2024 (GLOBE NEWSWIRE) -- K92 Mining Inc. (“K92” or the “Company”) (TSX: KNT; OTCQB: KNTNF) is pleased to announce that K92 and its Papua New Guinea subsidiary, K92 Mining Limited (“K92 PNG”), have entered into two separate credit facilities (the “Credit Facilities” and individually the “Canadian Credit Facility” and the “PNG Credit Facility”, respectively) with Trafigura Pte Ltd (“Trafigura”). The Credit Facilities replace the previous loan agreement with Trafigura announced in September 2023 (see September 26, 2023 press release) (the “2023 Loan Facility”) and upsize, on an aggregate basis, the 2023 Loan Facility amount from US$100 million to US$120 million, with an accordion feature to increase the aggregate amount available under the Credit Facilities to US$150 million (the “Accordion Feature”). The key terms of the Credit Facilities are set out below. The Credit Facilities may be used for general corporate purposes, working capital purposes, and capital expenditure. No hedging is required for the Credit Facilities. All conditions precedent for advance of US$100 million under the Canadian Credit Facility have been satisfied, with the remaining US$20 million subject to a Condition Precedent under K92’s control and expected to be satisfied later this month, with the funds for the additional US$20 million available January 1, 2025. The Accordion Feature will become effective by mutual agreement between K92 and Trafigura. The 2023 Loan Facility has been terminated and the parties have entered into an agreement to release all security therewith. The Credit Facilities further strengthen K92’s strong financial position, with US$73.4 million in cash and treasury bills and no debt as at March 31, 2024. In addition, K92 PNG and Trafigura have entered into a new offtake agreement for the purchase by Trafigura of 100% of K92 PNG’s copper/gold concentrates produced at the Kainantu Gold Mine in Papua New Guinea (the “New Offtake Agreement”), replacing the amended offtake agreement announced on September 26, 2023 which did not come into effect (the “Amended and Restated Offtake Agreement”). Key terms of the New Offtake Agreement remain substantially the same as the Amended and Restated Offtake Agreement described in the Company’s September 26, 2023...

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