VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 22, 2016) - K92 Mining Inc. ("K92") (TSX VENTURE:KNT)(OTCQB:KNTNF) is pleased to report that a Power Supply Agreement ("PSA") has been concluded with the state utility company of Papua New Guinea, PNG Power ("PPL") for the supply of power to the K92 site located in the Eastern Highlands of Papua New Guinea. The PSA is in place for an initial period of five years and is renewable for a further five years upon the agreement of both parties.
- Initial contract is for 5 years with a renewal clause for a further 5 years
- Power to be supplied at a competitive rate and locked in for the initial 5 year period
- PPL has agreed to fund a Kina 500000 capital programme aimed at increasing the reliability of power to K92's site
- K92 has installed a new main process plant switch board on site, ensuring limited disruption to operations during any switchovers to standby power (available at site) should PPL power be interrupted.
Ian Stalker, K92 Chief Executive Officer, states, "This power supply agreement is an important milestone for K92. It locks in an attractive rate, ensures long term stability of supply and eliminates many of the risks associated with future potential increases in the price of oil. This agreement enables K92 to continue the momentum towards reaching state operations at the mine and mill. In addition to being economically superior to diesel generated power, hydro-electric power is also more environmentally friendly."
On Behalf of the Company
Ian Stalker, Chief Executive Officer and Director
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 potential expansion of resources which may or may not occur and the generation of further drilling results which may or may not occur. 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, 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.
K92 Mining Inc.