VANCOUVER, BC, Dec. 8, 2020 /CNW/ - Kainantu Resources Ltd.
(TSX-V: KRL) ("KRL" or the "Company"), the Asia-Pacific focused gold exploration company,
today commences trading on the TSX Venture Exchange ("TSX-V"),
having closed its qualifying transaction with PLB Capital Corp. and
private placement of C$4.1 million,
as detailed in the press release dated December 3, 2020.
KRL provides investors with a unique platform for entry-level
access to an Asia-Pacific based
junior with a high-quality project, in a globally recognised gold
mining district.
With an immediate focus on Papua New
Guinea ("PNG"), KRL's gold exploration project is in close
proximity to other successful mining operations in the Kainantu
region that host high grade epithermal and porphyry
mineralization.
The listing and private placement puts KRL in a strong financial
position for a targeted field programme in 2021 and beyond, as the
Company advances its exploration efforts towards drilling and a
potential initial resource.
Leveraging management's regional expertise and collaborating
with highly credentialed business partners in PNG, KRL is also well
placed to pursue other value accretive strategic opportunities in
the geologically rich Asia-Pacific
zone. Several initiatives are currently under review and will
be evaluated in the coming months.
KRL's corporate highlights are as follows:
- Significant exploration upside potential at its gold project
offering a prospective path to resource definition within close
proximity to a world class, high-grade gold mine
KRL's project comprises two tenements: KRL South and
KRL North. Both are highly prospective projects with
significant untapped potential in a globally recognised gold
production region. KRL North borders one of the highest grade
producing gold ore bodies in the world, while KRL South lies on the
same Kainantu transfer structure (some 25 km to the south
west). The priority KRL South tenement has already shown
various types of mineralization, including epithermal vein style
systems, multiple skarn deposits and porphyry potential.
- Strong business partnership with an established in-country
operator
KRL has entered into a strategic alliance and support
services arrangement with Asia Pacific Energy Ventures; the parent
company of the well regarded PNG EPC business, Pacific Energy
Consulting Limited. This alliance gives KRL access to a
strong PNG network to neutralise sovereign risk; whilst also
providing immediate solutions to overcome in-country start-up
delays often experienced by other junior miners.
- Experienced Board and management team with impressive track
record in Asia-Pacific
KRL's senior management and Board comprises credentialed
industry participants in their respective fields, including
geology, technical and corporate finance. Working together as
a team, management has a track record in developing and operating
gold mines in challenging regions in Asia-Pacific, including creating significant
shareholder value for Archipelago Resources plc through the
commissioning of the Toka Tindung mine.
- Support for projects at national, regional, and local levels
and a commitment to delivering leading corporate and sustainability
disciplines
KRL is committed to delivering for all its stakeholders in
PNG at a national, regional, and local level. In 2021, KRL expects
to complete critical road infrastructure improvements in the
Kainantu region to support the community; in addition to provide
project access.
- World class gold region with a commitment to the mining
industry
PNG is renowned for mineral projects with high grade gold
and copper deposits on the Papuan Mobile Belt. The PNG
government remains strongly focused on supporting junior miners and
KRL continues to receive encouragement from the Mineral Resources
Authority for work to date in country.
Matthew Salthouse, CEO of KRL,
commented:
"I am pleased to introduce KRL to the market following the
successful completion of the over-subscribed private placement,
allowing us to accelerate our exploration activities in the highly
prospective Kainantu region. On behalf of the Directors, I
also welcome our new shareholders to the register.
KRL gives shareholders a unique value proposition amongst
smaller exploration companies, holding a high-quality project in
close proximity to successful producers; while also providing a
platform for exposure to the renowned Asia-Pacific precious metals
sector.
With access to greater liquidity and a widening of the
current investor base, we look forward to updating the market
through 2021 as we pursue the next phase in KRL's
development."
For further information please visit
https://kainanturesources.com/
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this
release.
Disclaimer and Forward-Looking Information
Statements contained in this release that are not historical
facts are forward-looking statements that involve various risks and
uncertainty affecting the business of KRL. In making the
forward-looking statements, KRL has applied certain assumptions
that are based on information available, including KRL's strategic
plan for the near and mid-term. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking information. KRL does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
SOURCE Kainantu Resources Ltd.