Kainantu Resources Ltd (TSX-V:KRL) (KRL) has filed its interim results for the nine months ending September 30, 2022, noting that its capitalised expenditure on exploration and evaluation activities totalled $1.78 million due to expanded exploration activities, including a significant airborne geophysical survey over properties adjacent to K92 Mining.
The Asia-Pacific-focused gold mining company said as of September 30, 2022, cash and receivables totalled $0.32 million with $0.18 million of non-trade receivables. After the reporting date on November 3, 2022, the company completed the first tranche of a private placement, securing C$1.70 million in funding and significantly increasing its cash balance. The second and final tranche of the offering of up to an additional C$0.8 million is progressing and is expected to close on or about January 12, 2023.
Cash used in operating activities was $0.71 million while $1.65 was for investing activities and net inflows from financing was $1.90 million, the company said.
READ: Kainantu Resources identifies three high-priority exploration targets at Ontenu area of KRL South project
KRL added its loss for the period was $0.78 million, a reduction of $0.33 million compared to 2021 which included non-recurring one-off listing expense and non-cash share-based payments.
During the period, at the Ontenu prospect at KRL South, three high-priority targets were identified, based on structural, geochemical and geophysical signatures, with a focussed, grided soil sampling programme underway. The Tirokave area of interest, meanwhile, has been expanded to include an additional prospect at Mt. Yungateia.
At KRL North, a cluster of soil samples around the ring feature in the southern corner of EL2558 support the potential for continuity of high-grade mineralisation from the Bilimoia gold field within K92.
Additionally, at May River, fieldwork at the Mountain Gate prospect has identified a number of potential targets for further studies to define epithermal and porphyry styles of mineralisation. In relation to the acquisition of the Kili Teke project, closing events include the preparation of an NI 43-101 technical report to verify the existing resource estimate.
"KRL is pleased to provide this update for Q3 2022, with a number of initiatives being pursued at high-grade targets inclusive of KRL North, Ontenu and May River/Mountain Gate; in addition to progress towards closing the Kili Teke acquisition. The recent private placement provides ongoing funding for KRL to pursue our value accretive projects," Matthew Salthouse CEO of KRL said.
Kainantu Resources has three highly prospective gold-copper projects, KRL South, KRL North and the May River Project. All of the projects are located in premier mining regions of Papua New Guinea.
Contact the author at jon.hopkins@proactiveinvestors.com