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Kainantu has cash of $650,000 (U.S.) at Dec. 31

2022-05-04 21:30 ET - News Release

Mr. Matthew Salthouse reports

KAINANTU RESOURCES REPORTS FILING OF FISCAL 2021 RESULTS

Kainantu Resources Ltd. has filed its annual and fourth quarter results for the fiscal year ending Dec. 31, 2021, a copy of which is available for review on the company's website.

Key aspects to report from a financial perspective over the fiscal period ending Dec. 31, 2021, include:

  • Prudent management of the company's balance sheet and capital resources is continuing;
  • Expenditures on exploration and evaluation activities for the 13 months to Dec. 31, 2021, totalled $1.45-million (U.S.) (which has been capitalized), with additions of $290,000 (U.S.) for the quarter;
  • Closing cash was $650,000 (U.S.), with total cash outflows of $450,000 (U.S.) during the quarter;
  • A net loss for the 13 months of $1.78-million (U.S.) (inclusive of $980,000 (U.S.) of listing and equity compensation costs); the loss for the quarter was $670,000 (U.S.) (with $410,000 (U.S.) of listing and equity compensation costs);
  • Given the company's transition to a calendar reporting cycle, the results are presented for a 13-month period on this occasion.

Subsequent to Dec. 31, 2021, the company completed an oversubscribed private placement, raising in two tranches, on Jan. 4, 2022, and Jan. 21, 2022, total proceeds of $2.77-million (Canadian). Further, on April 6, 2022, the company announced it had entered into a definitive agreement with Harmony Gold (PNG) Exploration Ltd., a wholly owned subsidiary of Harmony Gold Mining Company Ltd., to acquire a 100-per-cent ownership of the Kili Teke gold-copper project.

Matthew Salthouse, chief executive officer of Kainantu Resources, commented:

"KRL is pleased to provide this update for the year ended Dec. 31, 2021, to its shareholders. The company has successfully executed initiatives over the last 12 months to build a portfolio of projects, all with material value accretive potential. 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.

"Appetite to support the company was evident subsequent to year-end, with completion of an oversubscribed financing. The definitive agreement with Harmony also demonstrates the company's ability to enter into value accretive acquisition in region with high regarded industry participants."

About Kainantu Resources Ltd.

Kainantu Resources is an Asia-Pacific-focused gold mining company with four highly prospective gold-copper projects, the Kili Teke project, the KRL South project, the KRL North project and the May River project. All projects are located in premier mining regions in Papua New Guinea.

Both KRL North and KRL South show potential to host high-grade epithermal and porphyry mineralization, as seen elsewhere in the high-grade Kainantu gold district. 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. Kainantu Resources has a highly experienced board and management team, with a proven record of working together in the region, and an established in-country partner.

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