Kincora Copper will use proceeds of a private placement to remove debt and support its consolidation and exploration strategy. The company has also resumed field season activities at its Mongolian exploration properties.

The non-brokered private placement realised gross proceeds of C$1,053,060. Concurrent with, and on the same terms of, closing the placement, more than 6.666 million shares have been issued to Origo Partners Plc, the company’s largest shareholder, for settlement of the outstanding $2 million convertible note.

Existing funds in escrow of $500,000 have been returned to Origo and conversion of accrued interest into Kincora scrip is shortly expected, subject to TSX Venture Exchange approval, fully settling the Origo note.

Subject to regulatory approval, Kincora has also entered into agreements with certain of its creditors pursuant to which it will agreed to settle debt in the aggregate amount of $212,750 in exchange for the issuance of post-consolidation shares.

This will result in Kincora having a debt-free balance sheet and funds raised from the non-brokered private placement being used to advance its exploration and consolidation strategy in the Southern Gobi copper-gold belt.

Kincora’s president and CEO Sam Spring said, “The offering and debt conversions have been supported by key existing shareholders and results in a restructured and recapitalised platform for Kincora to move forward with.

“Almost $2.9 million of total debt, including previously escrowed funds, has been removed, with just over $1 million of cash injected and available to support our consolidation and exploration strategy. Kincora now has an improved corporate structure, balance sheet, and better alignment for creating value for shareholders, with the financial requirements of the transaction with the Ibex subsidiaries also satisfied.

“Field season activities have been resumed as certain Mongolian processes and related approvals continue to progress relating to the Ibex transaction.

“Efforts are being advanced providing for a wider succession plan regarding the board and management team, with details on general strategy to be outlined in due course following achievement of these key initial milestones of closing the private placement, debt conversions and share consolidation."


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