Kincora Copper has reached agreement to merge two subsidiaries with Ibex Land Mongolia LLC and Ibex Mongolia LLC resulting in consolidation of more than 1500sqkm of land in the rich South Gobi copper-gold belt of Mongolia.
The two Ibex entities are indirectly controlled by High Power Exploration (HPX), whose proprietary Typhoon technology will be available to support Kincora with its exploration efforts. This technology was instrumental in the discovery and delineation of high-grade ore bodies at Oyu Tolgoi.
The consolidated landholding includes the majority of the prospective exploration licences which dominate a key geological trend between and along strike from the Oyu Tolgoi and Tsagaan Suvarga copper mines, supporting an industry leading proposition of copper/gold and gold targets.
Former Oyu Tolgoi president and CEO Cameron McRae is assisting Kincora in a managerial role to oversee the transition.
There are at least six porphyry and one epithermal gold advanced targets in the landholding, including the most significant untested complex in the belt.
HPX will become a shareholder of Kincora and will provide support via the Typhoon geophysical technology and other proprietary technical services.
The merger will result in a strengthened team with discovery experience and complementary skill sets for exploration through to project development internationally and in Mongolia.
Kincora’s president and CEO Sam Spring said, “Ibex’s portfolio was secured and targets advanced by former key executives of Oyu Tolgoi’s exploration team and focused on ‘mega scale’ gold rich copper porphyry targets.
“The consolidated portfolio covers the majority of the Oyu Tolgoi-Tsagaan Suvarga related Devonian copper trend along the island arc trace, often with transverse structures. Such a setting, and results to date, increases our confidence that this land holding can host clusters of ore bodies similar to more mature porphyry belts globally.
“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.
“Recommencement of Oyu Tolgoi Stage 2 is a very positive step forward for this copper belt, Mongolia as an investment destination and supports the merits of this transaction.”