Kincora has been one of the most active copper exploration groups in the Southern Gobi for 5 years and with this transaction gains a number of advanced stage and large scale exploration targets supported by one of the largest regional geological and geophysical databases globally, which have had little or no drilling.
Kincora Copper Limited is pleased to announce it has reached agreement providing for the merger of two Kincora subsidiaries with Ibex Land Mongolia LLC and Ibex Mongolia LLC, entities indirectly controlled by High Power Exploration Inc.
The transaction will result in a consolidated landholding of over 1,500km2, the majority of the prospective exploration licenses which dominate a key geological trend between and along strike from the Oyu Tolgoi and Tsagaan Suvarga copper mines, supporting an industry leading proposition of copper/gold and gold targets. HPX’s proprietary Typhoon technology, instrumental in the discovery and delineation of high-grade orebodies at Oyu Tolgoi, will be available to support Kincora with its exploration efforts. Cameron McRae, former President and CEO of Oyu Tolgoi is assisting Kincora in a managerial role to oversee the transition.
— One of the largest known regional geophysical and surface geochemical datasets globally supporting various style targets: i. “Mega” porphyry discoveries; ii. “Traditional” gold rich copper porphyries; and, iii. epithermal and Carlin-style gold deposits.
— Consolidates a regional portfolio in a world-class gold rich copper province analogous to exploring the majority of the Northern Chile copper belt from the 1970s.
— At least 6 porphyry and one epithermal gold advanced targets, including the most significant untested complex in the belt.
— HPX will become a shareholder of Kincora and provide support via provision of its Typhoon geophysical technology and other proprietary technical services.
— Strengthened team with discovery experience and complementary skill sets for exploration through to project development international and in Mongolia.
— Near term catalysts include: testing advance stage targets; proof of geological interpretation of regional portfolio and similar age/style/mineralized targets as other porphyries in the belt; additional strategic land; and, other potential corporate opportunities.
“Ibex’s portfolio was secured and targets advanced by former key executives of Oyu Tolgoi’s exploration team and focused on ‘mega scale’ gold rich copper porphyry targets. The consolidated portfolio covers the majority of the Oyu Tolgoi-Tsagaan Suvarga related Devonian copper trend along the island arc trace, often with transverse structures. Such a setting, and results to date, increases our confidence that this land holding can host clusters of orebodies similar to more mature porphyry belts globally,” commented Sam Spring, President & CEO.
“The merger is an opportunity that wouldn’t be available at other points of the Mongolian and commodity cycles, is at an attractive scrip acquisition price, with involvement of one of the industry’s leading groups who will be a new shareholder and provide proprietary technical services.
Kincora has been one of the most active copper exploration groups in the Southern Gobi for 5 years and with this transaction gains a number of advanced stage and large scale exploration targets supported by one of the largest regional geological and geophysical databases globally, which have had little or no drilling. The merger will support considerable synergies, scale and strategic appeal to our existing Bronze Fox and Tourmaline Hill Intrusive Complex targets, the recently secured Ulaan Khudag license and securing additional prospective land.
Recommencement of Oyu Tolgoi Stage 2 is a very positive step forward for this copper belt, Mongolia as an investment destination and supports the merits of this transaction.”
Kincora has entered into a definitive Share Exchange Agreement with High Power Ventures Inc. (“HPV”), a private company controlled by HPX, whereby HPV’s wholly owned Mongolian subsidiaries, Ibex Land Mongolia LLC and Ibex Mongolia LLC will merge with Kincora’s respective land holding and services subsidiaries. The Ibex subsidiaries are the remaining assets of Goviex Gold that was incorporated in 2007 to explore in Mongolia, China and Australia, and which has seen over US$25 million of investment.
— In connection with the Merger, Kincora will issue to or at the direction of HPV a total of 58,950,000 shares of Kincora and 29,475,000 share purchase warrants each Warrant entitling the holder to acquire a share of Kincora at a price equal to 1.8 times the price per security of the next minimum $500,000 private placement of Kincora. The number of Shares and Warrants are subject to adjustment in certain circumstances.
— Acquisition of 7 exploration licenses, and 2 new license applications covering over 1,000km2 between and along strike from Oyu Tolgoi and Tsagaan Suvarga copper mines.
— One of the largest regional geological and geophysical databases globally, with extensive historical Zeus Induced Polarization data, magnetics and geochemistry.
— At least 6 porphyry and one epithermal gold advanced targets, with insufficient target testing, and earlier stage project generation across most licenses.
— Fully winterized camp, fleet, permitted landing strip, IT and exploration equipment.
— HPX, Goviex Uranium Inc and HPV minorities will become shareholders of Kincora.
— 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.
— The Merger is subject to a certain Mongolian processes and approvals, and to the acceptance of the TSX Venture Exchange.
A Relationship Agreement with HPX has also been executed which provides for Kincora to access HPX’s Typhoon IP technology, other proprietary geophysical and industry leading technical services. Typhoon’s precursor, Zeus, was developed specifically for the undercover exploration effort at Oyu Tolgoi and in particular supported the discovery and delineation of the Hugo and Heruga orebodies, which make Oyu Tolgoi the largest high-grade group of Paleozoic porphyry deposits known in the world and the expected third largest copper mine globally once the recently approved underground development is complete.