Kincora Copper has entered into a binding earn-in term sheet with Woomera Mining for the Bronze Fox Copper-Gold Project located in Mongolia.
Under the agreement, Woomera will invest up to US$4 million (approximately AUD$6.1 million) over the next five years to earn an 80% interest in the project. After reaching this 80% threshold, Woomera has the option to acquire the remaining 20% stake for US$10 million in cash and a 1% net smelter royalty payable to Kincora.
Alternatively, Woomera may opt to enter into a shareholders’ agreement with Kincora. This agreement would see Kincora carried through to a final investment decision (FID) for project development, provided the project meets a minimum reserve requirement of 1 million gold equivalent ounces.
To support this earn-in process, Woomera, with a market capitalization of AUD$3.7 million, plans to raise AUD$2 million through a placement and a proposed share purchase plan.
In addition, Kincora will receive AUD$450,000 in shares, making it Woomera’s largest shareholder, and AUD$100,000 in cash as part of the deal.
