AFTER closing an oversubscribed Can$5 million private placement, Kincora Copper is able to undertake drilling this year at its Bronze Fox Copper-Gold Project. The successful closing of tranche 1 of the placement totals $4.6 million while the second tranche of $425,000 is subject to regulatory approval and is expected in May.

The placement was well oversubscribed with investors from North America, Europe, London and Asia. It attracted the interest of new shareholders including mining and/or five non-related Mongolian specialist investment groups.

The company paid finder’s fees of $190,642 in connection with the first tranche with efforts led by The Private Office SA and Resource Investment Capital (ResCap), and assisted by SkyPath Partners, Pareto Securities and The Mongolian Investment Banking Group. Kincora proposes to issue a further 8.5 million units for proceeds of about $425,000 to Khayyam Minerals, which remains subject to Khayyam obtaining certain regulatory and shareholder approvals.

The funds have been set aside for exclusive use on high priority drilling and exploration in 2014 and not for funding past or expected general and administrative (G&A) expenses. Kincora’s cash balance year at the end of 2013 was about Can$1.1 million and management continues to apply a concerted effort monitoring G&A working capital requirements.

Bronze Fox is about 250km from the Chinese border and within 140km of two large-scale greenfield copper construction projects - the US$6 billion Oyu Tolgoi Copper-Gold Project and Tsagaan Suvarga.

Kincora’s president and CEO Sam Spring says, “I would like to welcome a number of new investors, some of which are mining sector and/or Mongolia specialist groups, who participated in the private placement and thank existing shareholders for their continued support as we enter a very exciting period for Kincora.

“The focus is now mobilizing field season activities and advancing a number of corporate initiatives. Drilling and other follow-up activities are planned at Bronze Fox based on extremely promising previous results, new geophysical and other long lead time/technical activities undertaken in 2013.

“A follow-up phase of target drilling in 2001 at Oyu Tolgoi focused on similar untested geophysical targets, with often-supportive previous drilling, and led to the ‘discovery hole’ and subsequent definition of one of the world’s largest copper-gold porphyries. Kincora is looking to follow a similar exploration strategy.”

Kincora has hired principal geologist Henry Tebar, who has spent the past three years in Mongolia having identified and ground-truthed more than 300 prospects and has proven porphyry ore body discovery experience. He is familiar with the Bronze Fox project via his previous role heading the Trafigura Origo Joint Venture and having already worked with Kincora’s director of exploration, Yawen Cao.

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