Kincora consolidates key Mongolian land-holdings with ‘mega’ potential
TORONTO (miningweekly.com) – Bolstered by the recent restart of Rio Tinto’s multibillion-dollar Oyu Tolgoi Phase 2 in the copper belt, TSX-V-listed explorer Kincora Copper on Wednesday advised that it had reached an agreement with privately owned explorer High Power Exploration (HPX) to merge two Kincora subsidiaries with two of HPX's subsidiaries.
Kincora noted that the combined land-holdings in the Southern Gobi copper/gold belt created a consolidated land-holding of more than 1 500 km2 of prospective exploration licences. These dominated a key geological trend between and along strike from the significant Oyu Tolgoi and Tsagaan Suvarga copper mines, supporting an industry-leading proposition of copper/gold and gold exploration targets.
Under the terms of the all-scrip deal, HPX would become a shareholder of Kincora and support the exploration efforts by making available its proprietary Typhoon technology that was instrumental in the discovery and delineation of high-grade orebodies at Oyu Tolgoi. Former Oyu Tolgoi president and CEO Cameron McRae had also agreed to assist Kincora in a managerial role to oversee the transition.
Kincora had been one of the most active copper exploration groups in the Southern Gobi for five years and the transaction would combine one of the largest known regional geophysical and surface geochemical datasets globally, supporting various style targets including ‘mega' (Oyu Tolgoi-type) porphyry discoveries, ‘traditional’ gold-rich copper porphyries, and epithermal and Carlin-style gold deposits.
The consolidated land package had at least six porphyry and one epithermal gold advanced targets, including the most significant untested complex in the belt, the company stated.
"The merger is an opportunity that wouldn't be available at other points of the Mongolian and commodity cycles. [It is also] 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," commented president and CEO Sam Spring.
He added that the merger would support considerable synergies, scale and strategic appeal to Kincora's existing Bronze Fox and Tourmaline Hill intrusive complex targets, as well as the recently secured Ulaan Khudag licence. It would also help secure additional prospective land.
Kincora advised that near-term catalysts included testing advance-stage targets, proving the geological interpretation of the regional portfolio and similar age/style/mineralised targets as other porphyries in the belt, additional strategic land, and other potential corporate opportunities.
Kincora’s stock on Wednesday double on the TSX-V to C$0.05 a share.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation