- The European Bank for Reconstruction and Development
("EBRD") invests $1.4m and owns 6.16%
of Kincora
- EBRD is one of the largest investors in Mongolia and has now contributed capital to
all three projects in the Devonian copper belt
- $5.92m total gross funds
raised by Kincora in the last two months, with a total of
68,854,232 shares outstanding
VANCOUVER, Oct. 11, 2017 /CNW/ - Kincora Copper Limited (the
"Company", "Kincora") (TSXV:KCC) announces it has closed a second
tranche non-brokered private placement of units (the "Units") at
C$0.33 per Unit to raise C$1,400,000 (the "Second Tranche Private
Placement"). The Second Tranche Private Placement follows
closing of a First Tranche on August
22nd 2017, with total gross funds raised being
C$5.92m, supporting a well funded and
aggressive exploration and expansion strategy.
As per the Company's September
22nd, 2017 press release, each Unit is comprised
of one common share (the "Shares") and one-half of a share purchase
warrant with each whole warrant (the "Warrants") entitling the
holder to acquire a further Share at C$0.445 for a period of two years. The EBRD holds
certain pre-emptive rights to acquire further shares of Kincora in
future private placements and requires that EBRD consent to a
disposition of any interest in the Company's Mongolian
subsidiaries.
Sam Spring, President and CEO of
Kincora, stated: "Following an extensive due diligence process
we are delighted to have EBRD as a new shareholder. The Bank is a
significant investor in some of Mongolia's largest mining projects and has
provided finance to assist the development of the two existing
economic copper projects in the Devonian belt. EBRD's investment is
testament to the growing belief that Kincora holds some of the most
exciting exploration assets along one of the last great
underexplored copper belts.
In the last two months, Kincora has attracted two new
significant investors who are well known in the industry and now
also sit alongside HPX with a shareholding of approx. 6%.
This Second Tranche strengthens our balance sheet to
accelerate ongoing exploration activities, and with the fund
raising process now concluded operational news flow is set to
accelerate".
Eric Rasmussen, Director, Natural
Resources commented: "We are pleased to support the exploration
plans of Kincora with an equity investment. It is strategically
important for Mongolia to attract
quality investors into metals and minerals exploration in order to
realize the high potential for mining."
Background to EBRD
EBRD is a multilateral bank that promotes the development of the
private sector and entrepreneurial initiative in 38 economies
across three continents. The Bank is owned by 66 countries as well
as the EU and the EIB. EBRD investments are aimed at making the
economies in its regions competitive, inclusive, well-governed,
green, resilient and integrated. EBRD is one of the largest
institutional investors in Mongolia and a large investor in the Southern
Gobi region, including being a syndicate member in the project
financing of the underground development of Oyu Tolgoi.
Mongolia became an EBRD country
of operations in October 2006 and
since the beginning of its operations in Mongolia, the EBRD has committed through debt
and equity investments more than EUR 1.42
billion to the Mongolian private sector through 92 projects
in sectors ranging from banking to manufacturing and from mining to
agribusiness.
Kincora updated corporate structure
Kincora has granted to directors a total of 424,242 stock
options under the Company's stock option plan. The options have a
two-year term from issuance date being exercisable at a price of
$0.445 per share. The options will
vest over a four-month period from the issuance date.
All new Shares and Warrants issued are subject to a 4-month hold
period, expiring February
12th, 2018.
Following these issuances, Kincora has 68,854,232 issued shares,
a total of 10,168,580 warrants and 6,885,423 stock options
outstanding.
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.
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