Kincora Announces Private Placement to Accelerate Drilling
Kincora Announces Private Placement to Accelerate Drilling |
[04-August-2020] |
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VANCOUVER, BC, Aug. 4, 2020 /CNW/ - Kincora Copper Ltd. (the "Company", "Kincora") (TSXV: KCC) announces a non-brokered private placement (the "Offering") of units at $0.10 per unit (the "Units") to raised up to $5 million. The Units will be comprised of one share (a "Share") and one warrant (a "Warrant"), each Warrant entitling the holder to acquire a further share at a price of $0.25 for a term of 2 years. The Company is also pleased to have received strong indicative support from many existing and new shareholders, and Australian based brokers. Sam Spring, President and CEO, noted, "Initial drilling at the Trundle project has been very positive at our first two targets, Trundle Park and Mordialloc, and strongly warrants expanding the ongoing initial 6-hole program. A total of 22 holes are now proposed to aggressively pursue targets that our industry leading exploration team feel offer the potential for multiple clusters of high grade porphyry related copper-gold systems and position Kincora as the leading pure play porphyry explorer in Australia's foremost porphyry belt". Chairman Cameron McRae commented, "A strong and successful offering will provide the platform for a significant drilling program at Trundle, advancement of our district scale project pipeline in the Macquarie Arc and pursuit of a corporate strategy to maximise the value of our portfolio. It is pleasing to see our initial drilling results at Trundle attract considerable interest from the market, including resource sector specialists and leading Australian based brokers." Morgans Corporate Limited has been engaged as a finder for a portion of the non-brokered placement, and lead agent and manager for a proposed listing on the Australian Securities Exchange ("ASX"). As previously announced1, initial drilling results at the Trundle project have provided strong encouragement in the search for the core, ore-grade parts of a cluster of porphyry copper-gold systems in a brownfields setting to Australia's second largest porphyry mine, Northparkes, on the Macquarie Arc of the Lachlan Fold Belt in NSW, Australia. Given the nature of the skarn and pencil/finger porphyry targets and results to date at the Trundle Park and Mordialloc targets, the primary use of funds of the non-brokered private placement is expanding the current ongoing 6-hole program to a total of 22 holes with a further 11,000 metres of drilling. Other uses of funds include:
Table 1: Proposed Use of Funds – C$ ('000)
At the conclusion of the raise and completion of the ongoing 6-hole program, Kincora will have over C$6 million in cash. The Offering is proposed to close August 18th, 2020 and Units will be allocated on a pro rata basis if the Offering is over-subscribed. The Company may however elect to increase the size of the Offering to accommodate subscribers, subject to the consent of the TSX Venture Exchange. Closing is subject to receipt of approvals of the TSX Venture Exchange. All Units issued in connection with the private placement will be subject to a four (4) month hold period. The Company may pay finders' fees in connection with the Offering in accordance with the policies of the TSX Venture Exchange. Further details are provided in the latest corporate presentation on the Kincora website: https://www.kincoracopper.com/investors/presentations
The Trundle project Past explorer drilling has been extensive with the completion of 2208 holes for 61,146 metres but deeper drilling utilising modern exploration knowledge has been very limited. Over 92% of prior drilling has been to less than 50 metres depth, a depth that the existing major mines in this belt suggest is just too shallow, with just 11 holes beyond 300 metres (0.5% of holes drilled). Existing significant drill intersections supports vectoring to very compelling targets for Kincora's ongoing phase 1 drilling program at three existing mineralised systems – Trundle Park, Mordiallic and Bayleys. These systems have not been drilled since industry leading Induced Polarisation survey's, including HPX's proprietary Typhoon system, and magnetic modelling were completed. Further background information July 17th, 2020: replay of the Noosa Mining Virtual conference investor presentation (free registration): June 19th, 2020: John Holliday - Cadia Discovery History Talk via GeoHug June 9th, 2020: RRS Special Event: Investor Webinar featuring Kincora Copper (TSX.V: KCC) and RareX Limited (ASX: REE) April 7th, 2020: Richard Schodde and John Holliday video interview of the Lachlan Fold Belt March 18th, 2020: Press release: Kincora closes agreement with RareX January 30th, 2020: Press release: Kincora grows a district scale landholding in the Lachlan Fold Belt Qualified Person The review and verification process for the information disclosed herein for the Trundle project has included the receipt of all material exploration data, results and sampling procedures of previous operators and review of such information by Kincora's geological staff using standard verification procedures. About Kincora Copper Limited Our technical team is credited with multiple discoveries of Tier 1 copper assets. In 3Q'19, Kincora made the strategic decision to opportunistically pursue entry into the Macquarie Arc, in Central West of NSW. This is Australia's foremost porphyry belt, home to the giant Cadia, Northparkes mines and recent Boda discovery by Alkane Resources. The Macquarie Arc is synergistic in line with Kincora's core focus. It offers: the same scale of target (world-class); the same commodity mix (copper-gold or gold-copper); the same mineralized setting (porphyry and/or epithermal gold); supports a similar systematic exploration approach/exploration methods; and, is a region where the team has had significant exploration success. Forward-Looking Statements Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE Kincora Copper Limited | |||||||||||||
Company Codes: TorontoVE:KCC |
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