The transaction also gives Kincora access to HPX’s exploration expertise and one of the world’s largest “regional geological and geophysical databases.”
hopes that a renewed sense of political stability in Mongolia will reinvigorate investor interest, and it recently doubled down on the country with a deal that gives it one of the largest land positions in the highly prospective South Gobi region.
On May 25, the company announced an agreement with Robert Friedland’s High Power Exploration to consolidate over 1,500 sq. km of exploration licenses along strike from Turquoise Hill and Rio Tinto‘s Oyu Tolgoi copper-gold mine. The transaction also gives Kincora access to HPX’s exploration expertise and one of the world’s largest “regional geological and geophysical databases.”
“I think the tough markets definitely helped get the consolidation over the line, so to speak, and the recent moves by the government regarding Oyu Tolgoi, and foreign investment generally, definitely improved investor perception of the country,” elaborated president and CEO Sam Spring during an interview. “It took some time for the government to work through the details, but the majority of these issues have been resolved regarding the mining law, and exploration licenses are being issued again for the first time in around five years.”
Under terms of the deal, Kincora will issue a total of 59 million shares and 29.5 million purchase warrants to HPX subsidiary High Power Ventures which will end up owning around 12% of the company. Friedland’s involvement is obviously significant due to his role in the Oyu Tolgoi discovery, which fueled the rise of the first iteration of his initial Ivanhoe Mines vehicle.
source: canadianminingjournal.com
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