Bed time reading30 Aug 2016 23:12
Kincora looks set to secure funding for Mongolian copper-gold consolidation
Kincora is embarking on a major financing exercise which will allow it to capitalise on a commanding land position in Mongolia
June 8 (Proactive Investors) These are transformational times for Kincora Copper Limited (CVE:KCC), also occurring at what could be a low in terms of investor sentiment towards Mongolia.
At the end of May the company announced the consolidation of a significant swathe of ground with Ibex, a private company associated with famous mining entrepreneur Robert Friedland.
With the land comes one of the largest known regional geophysical and surface geochemical datasets globally supporting various style targets, including "mega" (Tier 1 type) porphyry discoveries, "traditional" gold rich copper porphyries and epithermal gold deposits.
Combined with Kincora's existing portfolio the newly amalgamated ground represents one of the most commanding land packages on what may well become the next major copper producing district in the world.
Most will know of Robert Friedland's success with Ivanhoe Mines which helped put Mongolia on the international stage having found and sold the great Oyu Tolgoi copper-gold mine several hundred kilometres south of Ulaanbaatar, but only 80 kilometres from the border of the world's largest consumer of copper, China. Recent resolution of a longstanding dispute over the expansion of the Oyu Tolgoi project supports a potential return to economic growth, positive FDI and investor sentiment towards Mongolia.
But Kincora chief executive Sam Spring believes that's just the start.
A deposit like Oyu Tolgoi rarely occurs in isolation, he says. Rather, he draws a parallel with one of the world's great copper producing nations, Chile, which began to be opened up to mining and exploration in the early 1970s.
The situation in Mongolia now is rather similar, he says. And following the consolidation of the new ground from Ibex, Kincora now holds a significant first mover advantage, controlling the majority of the prospective exploration licenses which dominate the key geological trend between and along strike from the Oyu Tolgoi and Tsagaan Suvarga copper mines.
It's this sentiment that lies behind the recent positive uplift in Kincora shares, from a 2016 low of C$0.015 to the current C$0.045, a threefold rise.
Spring has not been slow to follow up on the potential of the land position.
At the beginning of June he announced that Kincora would be looking to raise C$2 mln in new money in parallel to converting an existing C$2 mln debt into equity.
At a stroke Spring will have wiped out all of Kincora's debts and capitalised the company effectively to allow meaningful exploration to take place on the land package once plans are made.
It seems likely that a significant drill programme would be undertaken in the event that the majority of the money comes in, although Spring cautions th
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