VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 6, 2016) - K92 Mining Inc. (the "Company" or "K92") (TSX VENTURE:KNT) is pleased to announce that CRH Funding II Pte. Ltd. ("CRH") has exercised its right to convert 2,500,000 Class A Preferred Shares (the "Conversion Shares") of the 10,000,000 Class A Preferred Shares (the "Preferred Shares") currently held by CRH. The Conversion Shares will be converted into 4,751,831 Common shares of the Company and CRH will hold 4.79% of the issued and outstanding Common shares of the Company following the conversion.
All 10,000,000 Preferred Shares held by CRH are convertible into an aggregate of 19,007,324 Common shares of the Company. The terms and provisions attached to the Preferred Shares are detailed in the Company's Information Circular dated April 15, 2016 and filed on SEDAR on April 19, 2016.
Given the Company's common shares have traded above $1.25 for at least 10 consecutive trading days, the Company has provided CRH with an acceleration notice pursuant to the terms of the 10,000,000 Common share purchase warrants previously granted to CRH (the "Warrants") whereby all Warrants held by CRH will now expire on October 8, 2016. Each Warrant entitles CRH to purchase one Common share of the Company at an exercise price of CDN$0.75 per share.
Further, while the Company remains on schedule and on budget with regards to the restart of gold production, the Company and CRH also agreed to extend the deadline for the delivery by the Company of 3,000 ounces of refined gold produced from Irumafimpa to CRH required under the Gold Prepayment Agreement dated February 4, 2016 from December 31, 2016 to March 31, 2017. This will give the Company further flexibility as it evaluates the results of studies related to production at Kora and the doubling of mill capacity to 400,000 tpa (see K92 News Releases July 7th and August 17th for details).
Mr. Peter Yu, CRH Director, states, "Today's announcement describes multiple positive developments for K92 representing a further strengthening of the relationship between Cartesian and K92."
Ian Stalker, Chief Executive Officer and Director
The TSXV has neither approved nor disapproved the contents of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information, including statements regarding the exercise of the Warrants and the expected use of proceeds. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the market price of the Company's securities, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing and intended use of proceeds, the receipt of regulatory approvals, environmental risks, title disputes, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, claims and limitations on insurance coverage and other risks of the mining industry, changes in national and local government regulation of mining operations, and regulations and other matters.. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.