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- Kincora intends to raise up to C$6m at $0.33 per
Unit with half a warrant
- C$1.5m cornerstone investment
from a leading mining private equity investor
- Strong support from insiders, other existing and new
investors
- Proceeds will be used to advance high priority drill ready
targets and earlier stage district scale pipeline which have the
potential to host multiple Tier one assets and includes up to
26,000 metres of drilling
- Kincora will be joining other major players including Rio
Tinto in stepping up exploration on the belt. Rio Tinto recently
resumed regional exploration drilling for the first time in 5 years
at a target adjacent to Kincora's Red
Well license
VANCOUVER, July 6, 2017 /CNW/ - Kincora Copper Limited (the
"Company", "Kincora") (TSXV:KCC) announces a non-brokered private
placement of units (the "Units") at $0.33 per Unit to raise up to C$6,000,000 (the "Private Placement"). Each Unit
will be comprised of one common share (the "Shares") and one-half
of a share purchase warrant, each whole warrant (the "Warrants")
entitling the holder to acquire a further Share at C$0.445 for a period of two years.
The Company is pleased to announce that it has received a
subscription agreement for up to 4,545,545 Units (C$1,500,000) from one of the largest mining
private equity specialist funds following extensive technical and
legal due diligence, subject to Kincora raising a minimum total of
C$4,500,000 inclusive of the lead
order for which Kincora has indicative support for.
Sam Spring, President and CEO
commented, "I am delighted that we have attracted a lead order
from such an industry group, with it's due diligence process
providing validation of our exciting dual exploration and expansion
strategy, with strong support also from insiders, many existing and
new shareholders.
The offering will fund the first modern systematic Tier 1
drill testing and district scale reconnaissance exploration program
in the world-class, under-explored Southern Gobi Devonian copper
gold belt.
This provides for an extensive two-phase drilling program at
the East TS and Bayan Tal targets,
which are the first new Devonian targets since Oyu Tolgoi and
analogies to the two existing large scale mines in the belt. The
raising will also allow us to advance our earlier stage pipeline up
the value curve, and to undertake opportunistic and countercyclical
expansion activities benefiting from our proprietary knowledge of
the belt.
We note reports of Rio Tinto resuming regional drilling for
the first time in 5 years at a target adjacent to our Red Well license, now onto hole two, with plans
to also drill other new ground they have secured on the Devonian
trend towards our Bayan Tal target.
Such news is a positive validation of Mongolia as a jurisdiction and the potential
of other major discoveries in this belt where we hold a dominant
1437 km2 landholding."
Proceeds from the Private Placement will help accelerate the
Company's dual exploration and expansion strategy, and for general
working capital. Kincora already holds the dominant position in the
Devonian copper-gold belt, with plans for an extensive two-phase
drilling program at the East Tsagaan Suvarga and Bayan Tal targets for up to 16,000 metres (up to
8,000 metres at both targets), also providing for further
geophysics after the first phase of drilling, while advancing its
district scale multi-target, multi-stage pipeline.
The Company may pay finder's fees in accordance with the
policies of the TSX Venture Exchange in connection with the Private
Placement. None of the securities comprising the Units have been
and will not be registered under the U.S. Securities Act of 1933,
as amended, and may not be offered or sold in the United States absent registration or
applicable exemption from the registration requirements. This
press release does not constitute an offer to sell or the
solicitation of any offer to sell or the solicitation of an offer
to buy nor shall there be any sale of the Shares in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
Closing is subject to receipt of approvals of the TSX Venture
Exchange. All Shares and Warrants issued in connection with the
Private Placement will be subject to a four (4) month hold
period.
Further details are provided in an updated presentation on the
Kincora website:
http://kincoracopper.com/investors/corporate-presentation
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.
Qualified Person
The scientific and
technical information in this news release was prepared in
accordance with the standards of the Canadian Institute of Mining,
Metallurgy and Petroleum and National Instrument 43-101 – Standards
of Disclosure for Mineral Projects ("NI 43-101") and was reviewed,
verified and compiled by Kincora's geological staff under the
supervision of Peter Leaman, Senior
Vice-President of Exploration of Kincora Copper, who is the
Qualified Person for the purpose of NI 43-101.
Forward-Looking Statements
Certain
information regarding Kincora contained herein may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates,
plans, expectations, opinions, forecasts, projections, guidance or
other statements that are not statements of fact. Although Kincora
believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Kincora cautions that
actual performance will be affected by a number of factors, most of
which are beyond its control, and that future events and results
may vary substantially from what Kincora currently foresees.
Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices,
exploitation and exploration results, continued availability of
capital and financing and general economic, market or business
conditions. The forward-looking statements are expressly qualified
in their entirety by this cautionary statement. The information
contained herein is stated as of the current date and is subject to
change after that date. Kincora does not assume the obligation to
revise or update these forward-looking statements, except as may be
required under applicable securities laws.
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