Kincora Copper has entered into an agreement granting exclusive rights to carry out due diligence with respect to a potential joint venture, earn-in, strategic alliance, equity investment or other transaction in respect to its Bronze Fox project.
The exclusivity agreement contemplates various work programs being undertaken by the third party during a staged review period in order to advance toward a potential transaction, and maintain certain exclusive rights to such a transaction and access to the properties/dataroom.
The agreement does not impact or restrict Kincora’s ability to undertake ongoing exploration activities or other customary corporate initiatives, such as private placements, securing additional licenses etc. Neither party is obligated to proceed with a potential transaction.
Kincora completed one of the most active copper exploration programs in Mongolia during 2013 and recently resumed drilling activities, for the first time since December 2012, at high priority copper porphyry targets, following other initial exploration activities that have already commenced.
Kincora’s president and CEO Sam Spring says, “Kincora is the last remaining listed copper junior in Mongolia without a strategic partner. This is despite Bronze Fox being one of the more advanced copper projects, situated in the Oyu Tolgoi mineralization structural trend, offering large-scale potential supported by known widespread lower grade copper mineralization, and localized higher grades, and strategically located in one of the most rapidly developing mining centres anywhere in the globe notwithstanding being in the centre one of the last underexplored frontiers.
“The company has attracted interest from various existing large-scale copper producers and welcomes advancing discussions with this particular group as we continue our ongoing drilling and other exploration activities at Bronze Fox. Kincora continues to have considerable support from new and existing shareholders, as illustrated by the recent oversubscribed private placement, and is actively pursuing various avenues to advance the technical progress of Bronze Fox.”
The Bronze Fox licence is about 250km from the Chinese border and within 140km of two large-scale greenfield copper construction projects - Oyu Tolgoi and Tsagaan Suvarga. Other significant mines, including Erdenes Tavan Tolgoi and other coal mines, with associated infrastructure (including rail, power and water, all within 45kms) are under construction in this immediate region. www.kincoracopper.com