- All approvals received for the IBEX transaction
- Forms the dominant landholding in the increasingly active Oyu Tolgoi-Tsagaan Suvarga (Devonian) copper belt
- Technical workshop completed reviewing targets across the Kincora and IBEX licenses with multiple exploration activities
already ongoing
VANCOUVER, Nov. 7, 2016 /CNW/ - Kincora Copper Limited (the
"Company", "Kincora") (TSXV:KCC) is pleased to announce the closing milestone for the IBEX transaction. This follows satisfaction
of all key Mongolian processes and approvals, and acceptance by the TSX Venture Exchange, with Kincora scrip (share) consideration
placed into escrow pending the re-registration of the IBEX licenses being achieved.
As initially announced on May 25th, 2016, Kincora and High Power Ventures Inc. ("HPV"),
a private company controlled by High Power Exploration Inc. ("HPX"), have agreed to consolidate their respective Mongolian land
holding and services subsidiaries ("IBEX transaction").
The transaction results in Kincora having a 100% interest in a portfolio covering over 1,500km2 and the majority of
the prospective exploration licenses that dominate a key geological trend between and along strike from the Oyu Tolgoi and Tsagaan
Suvarga (Devonian) copper mines. Kincora now holds an industry leading proposition of copper-gold and gold targets, and the
dominate landholding in this proven but underexplored gold rich porphyry district.
Sam Spring, Kincora President and CEO, stated:
"Closing the IBEX transaction results in Kincora being the largest landholder in the belt at a time when various incumbents
are again looking to increase their exploration footprint and advance exploration efforts, with increased activity of potential new
entrants undertaking due diligence revisiting the Southern Gobi's copper-gold potential.
We look forward to providing further details of various activities that have been taking place in preparation for completion
of the transaction, including the recently completed Technical Workshop, members of the newly formed Technical Committee, moving
forward with ongoing and planned future exploration activities, potentially securing additional strategic land, and, other targeted
corporate opportunities.
I would like to thank all involved with reaching this milestone, particularly the Kincora and HPX teams".
Background to the IBEX transaction
- IBEX's portfolio is focused on porphyry targets to the east and south of Kincora's existing licenses with the consolidated
landholding now being the dominant position in the Oyu Tolgoi-Tsagaan Suvarga (Devonian) copper belt.
- A large and high quality regional geophysical and surface geochemical dataset supporting various style targets: i. Devonian
porphyries; ii. "Traditional" gold rich copper porphyries; and, iii. epithermal and Carlin-style gold deposits.
- Consolidates a regional portfolio in an underexplored but potentially world-class gold rich copper province analogous to
exploring the majority of the Northern Chile copper belt from the 1970's.
- Strengthened team with discovery experience and complementary skill sets for exploration through to project development
internationally and in Mongolia.
- Fully winterized camp, fleet, permitted landing strip, IT and exploration equipment.
- Kincora has placed 5,895,000 common shares and 2,947,500 warrants a exercise price of $0.54
(equal to 1.8 times the price per security of the July 28th, 2016, private placement of
Kincora) and a term of 24 months into escrow pending re-registration of the IBEX licenses. There is no cash consideration
relating to the IBEX transaction.
- It is intended that these Kincora securities will ultimately be held by the shareholders of HPV, the largest of whom are HPX
Techco Inc. ("HPX Techco") as to 65.78%, a subsidiary of High Power Exploration Inc., a private company, and GoviEx Uranium Inc.,
a TSX venture exchange listed company, as to 21.64%.
- HPV will have certain rights to maintain their ownership percentages by participating in further capital raisings and, at a
threshold of share ownership, have the right to a board seat.
- A Relationship Agreement with HPX Techco has also been executed which provides Kincora conditional access to HPX's suite of
geophysical technologies.
About HPX
HPX is a privately owned metals-focused exploration company deploying proprietary geophysical technologies to rapidly
evaluate buried targets.
More information about HPX can be found at http://www.hpxploration.com
About Kincora
Kincora is a junior resource company engaged in the acquisition, exploration and development of mineral properties, with
a focus on copper-gold projects in Mongolia.
For further information: www.kincoracopper.com.
Qualified Person
The scientific and technical information in this news release was prepared in accordance with the standards of the
Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101") and was reviewed, verified and compiled by Kincora's geological staff under the supervision of Mike Woodbury, a consultant geologist to Kincora Copper, who is the Qualified Person for the purpose of
NI 43-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Kincora Copper Limited
