Kainantu Resources Announces Submission of the Kili Teke Project Technology Report

VANCOUVER in BC, Jan. 12, 2023 /CNW/ Kainantu Resources Ltd. (TSX: KRL) FSE: 6J0 (“KRL” and the “Company”) Asia-Pacific A focused gold mining company is pleased to announce that a Technical Report, titled “Kili Teke Cu –Au Project”, has been filed. Papua New Guinea” With an effective date January 12, 2023 (the “Technical Report”). This report is about the Company’s proposal to acquire from Harmony Gold (PNG), Exploration Limited (“Harmony”) to the Kili Teke, originally revealed on April 6, 2022.

Independent Qualified Person Mr. Graeme Jon Fleming GJF Geological Services, who is a Qualified person as defined in National Instrument 43-10 Standard of Disclosure for Mineral Projects (“NI 43-101”). You can find the report on the Kili Teke Project Page of the Company’s Website (https://kainanturesources.com/projects/kili-teke-project/) and under the Company’s profile on SEDAR at www.sedar.com.

Highlights from Kili Teke’s Technical Report:

• Harmony completed the most recent mineral resource estimate (“MRE”) of Kili Teke in 2017. Harmony provided the latest mineral resource estimate for KiliTeke (“MRE”) in 2017. 237Mt @ 0.34% Cu and 0.24g/t A, 168ppm MO, for a total 802kt Cu, 1.81Moz Au, and 40kt mo (at a 0.2%Cu cut-off). This is confirmed and reiterated in the Technical Report.

• The MRE does not include skarn mineralisation into the resource which is expected to increase the Cu and Au grades by 5% and 4%, respectively, and to increase the respective metal contents by 11% and 10% – representing significant upside potential.

• KRL conducted a preliminary mining survey and found that there is potential to infill drill the open-pittable resource. KRL believes an open-pit mine can generate strong economic returns if higher-grade mineralisation is possible with the deposit’s upper reaches. Future infill drilling will be directed at the excluded skarn.

Matthew SalthouseKRL’s CEO commented: 

“The completion of the Technical Report is a significant step forward, and fulfills one of the few conditions precedent to KRL acquiring the Kili Teke Project. KRL plans to close its capital raise in the near-future. After payment has been made and the transaction is complete, the only remaining conditions are approvals from local regulators and the transfer or certain rights.

Kili Teke Acquisition Background

KRL announced the acquisition from Kili Teke. Harmony Gold (PNG Exploration Limited is a wholly owned subsidiary of Harmony Gold Mining Company Limited. South AfricaThese terms apply to the following (see KRL press releases, dated April 6, 2022These are the following:

• Cash consideration as an initial cash payment US$1,000,000, payable in two instalments: US$500,000 On closing, the Company has advanced a refundable security deposit of US$100,000?, and US$500,000 upon receipt of post-closing regulatory clearances (expected in the latter part of 2023);

• KRL plans to work towards a Preliminary Economic Assessment (“PEA”) and then a Feasibility study. KRL can make further payments to Harmony if KRL views the Project positively each step. US$3 Million US$4,000,000 respectively;

• KRL will pay Harmony 1.5% net royalty on future mine revenue;

• Harmony can become a strategic investor at KRL. Harmony will receive warrants equaling 9.9% to the KRL issued share capital on closing. C$0.28 Per share

PPlacement in Rivate

KRL announces the non-brokered private placing (the “Offering”) of up to 22,727 273 units of Company (each, “Units”) at a cost of C$0.11 For aggregate gross proceeds up to $2,500, per unit C$2.5 Million An announcement was made October 19, 2022 This has been extended to January 24, 2023.

Following the closing of the first tranche, the Offering will be closed November 3, 2022The Company issued 15,635,790 Units in total at a cost of C$0.11 Per Unit to raise gross proceeds C$1,719,937.

The final and second tranche of the Offering is worth an additional approximately C$0.8million It is moving forward and should close before January 24, 2023 The Company will keep you informed about the progress of the Offering.

Each Unit is composed of one common stock of the Company (each a “Common Share”) along with one common purchase warrant (each a “Warrant”) for one Common Share. Each Warrant is exercisable at an exercise cost of $1. C$0.22 Per Common Share for any period of time, up to 36 month after the closing date. Each Warrant is subject to acceleration under certain circumstances.

Qualified Person

This release contains scientific and technical information that has been approved by Graeme Fleming, B. App. Sc., MAIG is an independent “qualified individual” as defined by National Instrument 43-101. Standard of Disclosure for Mineral Projects.

About Kainantu Resources Limited (KRL)

Kainantu Resources “KRL” is an Asia-Pacific Focused gold mining company that has three high-prospective gold-copper project, KRL South and KRL North. All of the projects are in PNG’s premier mining regions. Both KRL North as well as KRL South have the potential to host high-grade porphyry and epithermal mineralisation. This is similar to what can be seen in the Kainantu Gold District. The May River Project is close to the Frieda River Copper-Gold Project. Historic drilling indicates the potential for large copper-gold projects. KRL’s board and management team are highly experienced and have a strong track record in working together in this region. They also have an established partner in the country.  KRL has recently signed an agreement to purchase the Kili Teke Project in the western highlands PNG.

Visit this site for more information https://kainanturesources.com/

Neither the TSX-V or its Regulation Services Provider (as defined in the policies by the TSX-V), accepts responsibility for this release’s accuracy. Forward-Looking Information and Disclaimer This release contains forward-looking information that relates to future events or performance. These statements reflect management’s current assumptions and expectations. These forward-looking statements are based on current assumptions and information available to the Company. Other than historical facts, all statements are forward-looking information or statements. This news release includes forward-looking statements and information. These include, but are not limited to: the Closing of the Second Tranche of the Offering and the use thereof; the Company’s ability close the acquisition of KiliTeke Project; future Cu, Au and metal grades in the mineral resource estimations; potential upgrades of the open-pittable resources; formulation of plans to drill testing; any success related to future exploration or development programs, and potential economic return. These forward-looking statements reflect the Company’s current views regarding future events. They are based on a variety of assumptions, which, although considered reasonable, are subject to significant operational and business uncertainties and contingencies. These assumptions include: success of Company’s project; gold prices remaining as estimates; currency exchange rates remaining at estimated; availability funds for Company’s projects. Capital, decommissioning, reclamation estimates; prices of energy inputs, labour and materials (including transportation); no labour-related interruptions; no unplanned delays and interruptions in scheduled construction or production; all permits, licenses, and regulatory approvals are received promptly; and compliance with safety, environmental, and health laws. These assumptions are not all inclusive. This list of assumptions is not complete. This includes, but is not limited to, fluctuations in gold prices and fluctuations in energy inputs., labour, materials and services (including transportation). Operational risks and hazards inherent in the business of mining exploration. We are unable to obtain all required permits, licenses or regulatory approvals in a timely fashion. Changes in laws, regulations and government practice, including environmental laws and regulations; legal restrictions related to mineral exploration. Title matters and additional risks identified in our filings to Canadian securities regulators on SEDAR. Canada Available at www.sedar.com). While the Company has made every effort to identify factors that could affect actual results, it is possible that other factors can cause results not as anticipated, estimated or described. Forward-looking information and statements should not be relied upon by investors. These forward-looking information is made as of this date. Except as required under applicable securities laws, the Company doesn’t assume any obligation to modify or revise them in light of new events or circumstances.

SOURCE Kainantu Resources Ltd.

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