With this purchase complete, the British miner now owns 100 per cent of the mine, including leases and licences, which have been granted for a period of 10 years in accordance with PNG Mining Act 1992.
Although the cost of purchase was not made known, it is understood that K92 and Canadian industrial giant, Otterburn Resources had last year secured a loan of US$15 million (K39m) from a mining lender, to be used to restart the Kainantu mine.
The loan would be repaid to the lender through monthly deliveries of gold from September 2015 to December 2016.
K92 chief executive officer Ian Staker said the purchase was another achievement into the reopening of the gold copper mine.
“It is important to note that when we develop and implement our future plans to test the significant exploration potential at Kainantu, we will have the benefit of access to a substantial volume of historical exploration data.”
Activities planned by K92 onsite include the refurbishment of the existing mill and the Irumafimpa Mine underground infrastructure, underground and surface drill testing of the untested area between Irumafimpa to Kora and exploration targeting of potential undiscovered high grade deposits. PNG Today/The National