Kincora Copper aims to raise up to C$6 million in a private placement with funds to be used to advance high priority drill ready targets in the under-explored Southern Gobi Devonian copper gold belt of Mongolia. The company also proposes to drill earlier stage district scale prospects which have the potential to host multiple Tier one assets.
Kincora president and CEO Sam Spring says it will be the first modern systematic Tier 1 drill testing and district scale reconnaissance exploration program in the region. The program will include up to 26,000 metres of drilling.
The company has already received a subscription agreement for more than 4.5 million units costing C$1.5 million from one of the largest mining private equity specialist funds following extensive technical and legal due diligence, subject to Kincora raising a minimum total of C$4.5 million, inclusive of the lead order for which Kincora has indicative support for.
Sam Spring said, “I am delighted that we have attracted a lead order from such an industry group, with its due diligence process providing validation of our exciting dual exploration and expansion strategy, with strong support also from insiders, many existing and new shareholders.
“It will provides for an extensive two-phase drilling program at the East Tsagaan Suvarga (TS) and Bayan Tal targets, which are the first new Devonian targets since Oyu Tolgoi and analogies to the two existing large scale mines in the belt.
“The raising will also allow us to advance our earlier stage pipeline up the value curve, and to undertake opportunistic and countercyclical expansion activities benefiting from our proprietary knowledge of the belt.
“We note reports of Rio Tinto resuming regional drilling for the first time in five years at a target adjacent to our Red Well licence, now onto hole two, with plans to also drill other new ground they have secured on the Devonian trend towards our Bayan Tal target.
“Such news is a positive validation of Mongolia as a jurisdiction and the potential of other major discoveries in this belt where we hold a dominant 1437sqkm landholding.”
Kincora plans extensive two-phase drilling programs at East TS and Bayan Tal for up to 8000 metres at both as well as further geophysics after the first phase of drilling. It also plans to advance its district scale multi-target, multi-stage pipeline.
Kincora Copper