K92 Mining and its Papua New Guinea subsidiary have entered into two separate credit facilities with Trafigura, replacing the previous $100 million loan agreement with an upsized amount of $120 million. This new arrangement includes an option to increase the total available credit to $150 million. The funds from these facilities are intended for general corporate purposes, working capital, and capital expenditure. No hedging is required.
The initial $100 million from the Canadian Credit Facility is already available, with the remaining $20 million expected to be accessible by January 1, 2025. The additional $30 million under the Accordion Feature will be available subject to mutual agreement. The previous loan agreement has been terminated, and all associated security has been released.
K92 also announced a new offtake agreement with Trafigura for 100% of the copper/gold concentrates produced at the Kainantu Gold Mine. This replaces a previous agreement that did not come into effect. The new agreement has received regulatory approval in Papua New Guinea, subject to compliance with conditions including adherence to the gold export license terms.
K92’s CEO, John Lewins, stated, “The upsizing of the loan to up to $150 million is a crucial step for delivering the Stage 3 and 4 Expansions at the Kainantu Gold Mine. This boost to liquidity allows us to advance multiple high-priority exploration targets concurrently. Our strong relationship with Trafigura, our offtake counterpart since the start of operations, is reinforced by these agreements, securing long-term competitive terms and providing confidence in our income from concentrate sales.” 
