- Mongolian government approval process ongoing for the IBEX
transaction
- Extension to closing date agreed
VANCOUVER, Sept. 30, 2016 /CNW/ - Kincora Copper Limited
(TSX.V: KCC) ("Kincora" or the "Company"). Following the 10
for 1 consolidation of its outstanding share capital (the
"Consolidation") and the closing of its $1,053,060 private placement, (the "Private
Placement") as detailed in a news release dated July 28, 2016, Kincora wishes to update the terms
of its Share Exchange Agreement with High Power Ventures Inc.,
("HPV") as originally disclosed in the Company's news releases
dated May 25, 2016 and June 8, 2016, (the "IBEX transaction").
As result of the Consolidation, on closing of the proposed IBEX
transaction, Kincora would now issue 5,895,000 common shares and
2,947,500 warrants having an exercise price of $0.54 and a term of 24 months, subject to
acceleration in certain circumstances as detailed in the
July 28, 2016 news release.
There is no cash consideration relating to the IBEX transaction. It
is intended that these securities would ultimately be held by the
shareholders of HPV, the largest of whom are HPX Techco as to
65.78%, a subsidiary of High Power Exploration Inc., a private
company, and GoviEx Uranium Inc., a TSX venture exchange listed
company, as to 21.64%.
Closing of the IBEX transaction remains subject to Mongolian
governmental approvals, with this process ongoing, and has been
impacted by an adverse non-binding tax assessment.
Independent advice has confirmed Kincora and HPV's original tax
position in respect of the existing deal structure under Mongolian
tax and corporate law, and discussions are continuing. However, in
order to accommodate the ongoing discussions with Government
officials, Kincora and HPV have agreed to extend the deadline for
closing the IBEX transaction to October 31,
2016.
While Kincora is encouraged by Prime Minister Jargaltulgyn
Erdenesat's establishment of a working group, headed by the
Minister of Justice and Internal Affairs, to assist in situations
such as this, it is not certain that efforts to overcome the tax
assessment will be successful.
Sam Spring, Kincora President and
CEO, stated: "A technical workshop and site visit review of
targets across the proposed consolidated Kincora-IBEX license
portfolio has recently been completed. The Company will
continue to inform the market of progress relating to the
completion of the IBEX transaction and its implications to field
season activities."
About Kincora
Kincora is a junior
resource company engaged in the acquisition, exploration and
development of mineral properties, with a focus on copper-gold
projects in Mongolia. For further
information: www.kincoracopper.com.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Kincora Copper Limited