13 Sep 2010 07:00
13 September 2010
Origo Partners invests in Mongolian copper-gold exploration prospect
Origo Partners Plc ("Origo") today announced the acquisition of a 25% stake in Kincora Ltd, owner of the Bronze Fox copper-gold prospect ("Bronze Fox") in Mongolia for US$3 million.
Bronze Fox contains a number of exploration prospects, within a license covering 22,323 hectares in the Buyant area of Mandakh Soum of Dornogobi Aimag, situated in the south of Mongolia. The prospect lies in the Mongolian copper belt and is 140 kilometres northwest of the Oyu-Tolgoi copper-gold mine. Within the Bronze Fox licence area there is evidence of copper mineralisation at the surface of a 1 kilometre long, 600 metre wide monzonite intrusion, continuing to a depth of at least 400 metres. Gold mineralisation associated with copper is evident in a 12 metre wide band, suggesting the possibility of selectively mining a gold-rich zone.
Under the terms of the transaction, Origo has acquired 25% of Kincora for a total cash consideration of US$3 million. Kincora, which is a BVI registered copper and gold exploration company, owns a 100% interest in the Bronze Fox prospect through a wholly-owned Mongolian subsidiary. Origo has also been granted an exclusive option, exercisable prior to June 30, 2011, to increase its shareholding to 75% for an additional consideration of US$12 million.
Between 1975 and 1979 Soviet exploration teams trenched and drilled 23 diamond holes totalling 3,453 metres within the licence area. In 2005, Ivanhoe Mines also took rock chip samples, trenched, measured induced polarisation by gradient array and drilled twenty-four shallow diamond holes totalling 6,769 metres. This combined exploration work has identified the carapace of a large copper-gold mineralised system and revealed high potential for additional prospective intrusion-related gold and molybdenum targets. Kincora's drilling campaign, scheduled to begin in mid-September, will target several of these known copper-gold and gold zones.
Kincora will be operated by a three person exploration committee comprising two Origo representatives: Origo's Chief Geologist Dr Alan Watchman and Origo's Head of Mining Luke Leslie. As Chairman of the committee, Dr. Watchman, will oversee the exploration programme, under which 5 Origo geologists will be seconded to the Bronze Fox project. Alan Watchman has 38 years experience managing copper-gold and other exploration programs having previously led projects at Breakway Resources, Goldstake Exploration, Abra Mining, Aldershot Resources and Integrated Production Resources.
Commenting on today's announcement, Chris Rynning, CEO of Origo said:
"This investment is a continuation of our strategy of investing in exploration companies in prospective areas of Mongolia in order to benefit from growing Chinese demand for natural resources. Exploration work already undertaken on Bronze Fox has yielded promising results and, despite its early stage, we believe it has the potential to become a significant copper-gold mine. The Bronze Fox prospect benefits from being situated close to the Chinese border, in a known copper-belt, with access to both power and transport infrastructure.
"In addition, there are a number of untested geophysical, structural and geochemical anomalies within the Bronze Fox district, where we believe there is the strong possibility of discovering deposits of other commodities including molybdenum and gold. The exploration program, funded by $1 million from this transaction, will rapidly provide us with a better understanding of the size and grade of the deposits. A decision by Origo to exercise its exclusive option to increase its shareholding will depend upon the outcome of the development work which starts this month."
Resource Investment Capital, the Mongolian headquartered corporate finance advisory firm in which Origo has a stake, and Mongolian International Capital Corporation acted as financial advisors on the transaction. Origo's investment will be funded from its own cash resources.
For further information about the Origo please visit www.origoplc.com or contact:
| Origo Partners plc Chris Rynning (chris@origoplc.com) Niklas Ponnert (niklas@origoplc.com)
|
+86 1390 124 6417
+86 1351 106 1672 |
| Broker and Nominated Adviser Liberum Capital Limited Simon Atkinson/ Ellen
| +44 (0)20 3100 2222 |
| Public Relations: Aura Financial Andy Mills / Nina Legge | +44 (0)20 7321 0000 |
Notes to editors:
Origo Partners:
Origo is an AIM-listed private equity investor and strategic consultancy business which provides its shareholders with exposure to China-linked investment opportunities.
Origo has a significant portfolio of investments in a range of industrial sectors, including metals and mining, agriculture, renewable energy/clean tech and technology, telecom and media.
Origo invests directly in high growth Chinese companies as well as in companies based around the world with significant exposure to Chinese export markets.
Resource Investment Capital
Headquartered in Ulaanbaatar, Mongolia, ResCap seeks to foster long-term, senior-level relationships with clients and position itself as an independent advisor on strategic transactions such as mergers, acquisitions, restructurings, capital raising solutions and other financial matters. ResCap offers services to both Mongolian and international enterprises focused on natural resources and related infrastructure projects.
Mongolian International Capital Corporation
MICC is Mongolia's leading full-service investment bank, offering a range of investment banking products including corporate advisory, securities underwriting, brokerage, research, and asset management services. MICC maintains a dedicated Metals & Mining industry coverage team and is licensed by the Financial Regulatory Commission (FRC) of Mongolia.