08:01 AM EDT, 06/19/2024 (MT Newswires) -- K92 Mining ( KNTNF ) said on Wednesday that the company and its Papua New Guinea subsidiary, K92 Mining ( KNTNF ), signed two credit facilities with Trafigura Pte.

The credit facilities replaced the previous loan agreement with Trafigura and increased the 2023 loan facility amount to US$120 million ($164.5 million) from US$100 million. The facilities also have an accordion feature to increase the total amount available under the credit facilities to US$150 million.

The companies can use the credit facilities for general corporate purposes, working capital and capital expenditure.

Further, the company said all conditions precedent for an advance of US$100 million have been satisfied, with the remaining US$20 million subject to a condition precedent under K92's control and expected to be satisfied later this month. The funds for an additional US$20 million are expected to be available Jan. 1, 2025.

K92 PNG and Trafigura have also entered into a new offtake agreement for the purchase by Trafigura of 100% of K92 PNG's copper/gold concentrates produced at the Kainantu Gold Mine in Papua New Guinea. The agreement replaced the amended offtake agreement announced on Sept. 26, 2023, which did not come into effect.