/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
- $1.4m placement to the
European Bank for Reconstruction and Development ("EBRD")
- EBRD is one of the largest investors in Mongolia and will own 6.16% of
Kincora
- $5.92m raised by Kincora via
the recent two tranche private placements
- Drilling ongoing at East Tsagaan Suvarga ("East TS")
target
VANCOUVER, Sept. 22, 2017 /CNW/ - Kincora Copper Limited
(the "Company", "Kincora") (TSXV:KCC) is pleased to announce the
entering into of a subscription agreement (the "Subscription
Agreement") for a second tranche non-brokered private placement of
units (the "Units") at C$0.33 per
Unit to raise C$1,400,000 (the
"Second Tranche Private Placement") with the European Bank for
Reconstruction and Development ("EBRD"). The Second Tranche
Private Placement follows closing of a First Tranche on
August 22nd 2017, with
total gross funds raised being C$5.92m.
As per the Frist Tranche, each Unit will be comprised of one
common share of the Company (each, a "Share") and one-half of a
share purchase warrant, each whole warrant (each, a "Warrant")
entitling the holder to acquire a further Share at C$0.445 for a period of two years. The
Subscription Agreement provides EBRD with certain pre-emptive
rights to acquire further shares of Kincora in future private
placements and requires that EBRD consent to a disposition of any
interest in the Company's Mongolian subsidiaries.
EBRD is a multilateral bank that promotes the development of the
private sector and entrepreneurial initiative in 37 economies
across three continents. The Bank is owned by 66 countries as well
as the EU and the EIB. EBRD investments are aimed at making the
economies in its regions competitive, inclusive, well-governed,
green, resilient and integrated. EBRD is one of the largest
institutional investors in Mongolia and a large investor in the Southern
Gobi region, including being a syndicate member in the project
financing of the underground development of Oyu
Tolgoi. Mongolia became an EBRD country of operations in
October 2006 and since the beginning
of its operations in Mongolia, the
EBRD has committed through debt and equity investments more than
EUR 1.41 billion to the Mongolian
private sector through 86 projects in sectors ranging from banking
to manufacturing and from mining to agribusiness.
Sam Spring, President and CEO
commented, "We are very pleased to welcome EBRD as a
shareholder. The Bank has unique knowledge of, and relationships in
Mongolia and has provided finance
to assist the development of the two existing economic copper
projects in the Devonian belt. In the last two months, Kincora has
attracted two new significant investors who are well known in the
industry and have undertaken extensive due diligence.
The Second Tranche from EBRD will support and accelerates the
first modern systematic Tier 1 drill testing and district scale
reconnaissance exploration program in the world-class,
under-explored Southern Gobi Devonian copper gold belt with
drilling activities commenced at our East TS target in the last
month and shortly also to commence at the Bayan Tal
target."
None of the securities comprising the Units have been and will
not be registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or
applicable exemption from the registration requirements. This
press release does not constitute an offer to sell or the
solicitation of any offer to sell or the solicitation of an offer
to buy nor shall there be any sale of the Shares in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
Closing is subject to various Conditions Precedent of the
executed Subscription Agreement including receipt of approvals of
the TSX Venture Exchange and execution by the Company and its
Mongolian subsidiaries of a project support agreement (the "Project
Support Agreement") which provides, amongst other things, for
the proceeds from the Second Tranche to be applied to the Company's
exploration activities in Mongolia
as agreed to by EBRD. All Shares and Warrants issued in
connection with the Private Placement will be subject to a four (4)
month hold period.
Upcoming Events
SEPTEMBER
28th – OCTOBER
6th, 2017
LONDON & NORTH AMERICAN -
Non-Deal Roadshow
NOVEMBER
27-28th, 2017
LONDON - 121 Mining
Investments
Recent news
flow (all
available at www.kincoracopper.com)
September
22rd - Proactive Investors
interview: Kincora Announces Private Placement Agreement
with the European Bank for Reconstruction and Development
September 19th
- Palisade Research – Cameron McRae: Copper Prices Are In Bull
Market Territory And Will Continue to Climb
Discussion on copper, Mongolia,
Mongolian explorers including Kincora, and potential M&A in the
sector:
http://palisade-research.com/copper-prices-are-in-bull-market-territory-and-will-continue-to-climb/
August 31st
- Mining Journal: Mining Journal Mongolian
bellwether
http://kincoracopper.com/sites/default/files/content-files/20170831_MJ_Mongolian%20Bellwether.pdf
August 31st
- Drilling underway at brownfield open pit target
An updated presentation with further details on the East TS
and Bayan Tal targets, including drill program objectives:
http://kincoracopper.com/investors/corporate-presentation
August 23rd
- Proactive Investors interview: Kincora raises
$4.5m to push ahead with Mongolia drilling
August 22nd
- Completes issuance of shares and options
July 6th -
Lead Order in Private Placement
June 8th -
Expansion Update: Newly Issued License and Drops Ground
About Kincora
Kincora is a junior
resource company engaged in the acquisition, exploration and
development of mineral properties, with a focus on copper-gold
projects in Mongolia. For further
information: www.kincoracopper.com.
Forward-Looking Statements
Certain
information regarding Kincora contained herein may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates,
plans, expectations, opinions, forecasts, projections, guidance or
other statements that are not statements of fact. Although Kincora
believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Kincora cautions that
actual performance will be affected by a number of factors, most of
which are beyond its control, and that future events and results
may vary substantially from what Kincora currently foresees.
Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices,
exploitation and exploration results, continued availability of
capital and financing and general economic, market or business
conditions. The forward-looking statements are expressly qualified
in their entirety by this cautionary statement. The information
contained herein is stated as of the current date and is subject to
change after that date. Kincora does not assume the obligation to
revise or update these forward-looking statements, except as may be
required under applicable securities laws.
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