Kincora Copper has entered into a subscription agreement with the European Bank for Reconstruction and Development (EBRD) for a second tranche non-brokered private placement of units to raise C$1.4 million. The second tranche placement follows closing of a first tranche on August 22nd, with total gross funds raised being C$5.92 million.

The agreement provides EBRD with certain pre-emptive rights to acquire further shares of Kincora in future private placements and requires that EBRD consent to a disposition of any interest in the company’s Mongolian subsidiaries.

EBRD, a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 37 economies across three continents, will own 6.16% of Kincora.

The bank is owned by 66 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, inclusive, well-governed, green, resilient and integrated.

EBRD is one of the largest institutional investors in Mongolia and a large investor in the South Gobi, including a syndicate member in project financing of the Oyu Tolgoi underground development.

Mongolia became an EBRD country of operations in October 2006 and since the beginning of its operations in Mongolia, the EBRD has committed through debt and equity investments more than EUR1.41 billion to the Mongolian private sector through 86 projects in sectors ranging from banking to manufacturing and from mining to agribusiness.

Kincora’s president and CEO Sam Spring said, “We are very pleased to welcome EBRD as a shareholder. The bank has unique knowledge of, and relationships in Mongolia and has provided finance to assist the development of the two existing economic copper projects in the Devonian belt.

“In the last two months, Kincora has attracted two new significant investors who are well known in the industry and have undertaken extensive due diligence.

“The second tranche from EBRD will support and accelerate the first modern systematic tier 1 drill testing and district scale reconnaissance exploration program in the world-class, under-explored South Gobi Devonian copper gold belt with drilling activities commenced at our East TS target in the last month and shortly also to commence at the Bayan Tal target.”