AN agreement by Kincora Copper to merge its subsidiaries with Ibex Land Mongolia LLC and Ibex Mongolia LLC has resulted in the consolidation of more than 1500sqkm of land in the South Gobi copper-gold belt of Mongolia. The Ibex entities are indirectly controlled by High Power Exploration (HPX), whose proprietary Typhoon technology will be available to support Kincora with its exploration.
This technology was instrumental in the discovery and delineation of high-grade ore bodies at the Oyu Tolgoi Copper-Gold Project. HPX, which has become a shareholder of Kincora, is closely linked with prominent mining entrepreneur Robert Friedland.
The consolidated landholding includes the majority of the prospective exploration licences which dominate a key geological trend along strike from the Oyu Tolgoi and Tsagaan Suvarga mines. There are at least six porphyry and one epithermal gold advanced targets in the landholding, including the most significant untested complex in the belt.
Former Oyu Tolgoi CEO Cameron McRae is assisting Kincora in a managerial role to oversee the transition.
Subsequent to this agreement Kincora announced a non-brokered private placement to raise up to $2 million. Concurrent with the Ibex merger and the placement, Kincora has received a commitment from its largest shareholder, Origo Partners, to convert a $2 million convertible note outstanding into equity on the same terms as the placement, resulting in Kincora having a debt-free balance sheet.
All funds raised from the placement will, therefore, be used to advance the company’s exploration and consolidation strategy in the South Gobi copper-gold belt.
Kincora’s president and CEO Sam Spring said, “The merger is an opportunity that wouldn’t be available at other points of the Mongolian and commodity cycles, is at an attractive scrip acquisition price, with involvement of one of the industry’s leading groups who will be a new shareholder and provide proprietary technical services.
“Kincora has been one of the most active copper exploration groups in the South Gobi for five years and with this transaction gains a number of advanced stage and large-scale exploration targets supported by one of the largest regional geological and geophysical databases globally, which have had little or no drilling.
“The merger will support considerable synergies, scale and strategic appeal to our existing Bronze Fox and Tourmaline Hill Intrusive Complex targets, the recently secured Ulaan Khudag licence and securing additional prospective land.”