MELBOURNE, Australia, July 8, 2022
/CNW/ - Kincora Copper Limited (the Company, Kincora) (TSXV: KCC)
(ASX: KCC) provides the following update on the status of its joint
venture agreement (Joint Venture Agreement) with Resilience Mining
Mongolia Limited (Resilience) in relation to its existing Mongolian
asset portfolio.
Since entering the Joint Venture Agreement on June 30th 2021, the Company has
granted Resilience a number of extensions to the date for
satisfaction of the conditions to the Joint Venture Agreement which
include Resilience achieving a minimum capital raising and
admission to ASX. The most recent extension was the subject of the
Company's March 1st 2022,
announcement titled "Resource estimate work commenced from
Bronze Fox project in Mongolia". As at today's date,
notwithstanding the ongoing extensions, key conditions to the Joint
Venture Agreement remain unsatisfied.
The Company wishes to advise that it has issued a notice to
Resilience notifying it of the failure of conditions under the
Joint Venture Agreement. The effect of the notice is that, unless a
mutually agreeable further variation can be reached, the Joint
Venture Agreement will terminate in 30 days and enables the Company
to pursue other strategic options for the Mongolian asset
portfolio.
Kincora has indicated that it is willing to consider any further
proposal, which may be put forward by Resilience during the 30-day
notice period, but highlights that the Company remains committed to
seeing the asset portfolio move forward and extracting appropriate
value from it.
Sam Spring, President & CEO,
commented:
"Our Board has considered that the
course of action taken was necessary to seek to resolve the future
and direction of our wholly owned Mongolian asset
portfolio.
We have worked closely with Resilience for a
significant period of time, and while the door is still open to
them, today's notification provides the framework to pursue other
strategic options at a time of recent significant investment in the
world-class Southern Gobi porphyry belt.
The Company remains committed to extracting
appropriate value from the Mongolian assets for the benefit of our
shareholders, while we continue to focus our efforts and energy
towards active and systematic exploration activities in
Australia".
In addition to the above, for the purposes of this update, the
Company notes that it has received, and is in the process of
assessing, the data in respect of a JORC Resource prepared by
Resilience in respect of the Bronze Fox project in Mongolia.
The Company will make a further release following completion of its
review of the Resilience data and/or publication by Resilience of a
JORC Resource compliant press release or Mineral Resource Estimate
report.
The Company will provide further updates in due course.
Figure 1: Kincora's wholly owned, strategic and
district scale position in Mongolia's world-class Southern Gobi porphyry
belt
On China's doorstep,
trucking distance to the world's largest copper consumer
Recent significant investments in the Southern Gobi porphyry
belt:
- Oyu Tolgoi partners reach comprehensive agreement and approve
commencement of underground mining operations (estimated total
capex US$6.9 billion) – January 2022
- Rio Tinto's US$2.7 billion cash
offer for minority Turquoise Hill Resource's shareholders to
increase its effective ownership in the Oyu Tolgoi project –
March 2022
- Xanadu Mining's total staged investment of up to A$58 million from Zijing Mining (a global top 10
copper producer) – April 2022
Kincora's wholly owned Mongolian portfolio assets included
the Bronze Fox mining license, Tourmaline Hills and Red Well exploration licenses, the White Pearl
camp and one of (if not) the largest project generation databases
for Mongolia.
This announcement has been authorised for release by the
Board of Kincora Copper Limited (ARBN 645 457 763)
About Kincora Copper
Kincora Copper is an active and systematic ASX
and TSX-V listed exploration company (ticker "KCC") focused on
world-class copper gold discoveries in Australia's foremost porphyry region, the
Macquarie Arc, with the ambition to become the leading pure play
porphyry explorer this region. Kincora is also seeking to realise
value from its highly prospective portfolio of porphyry projects
located in the Southern Gobi, Mongolia's foremost porphyry region. For
further information please refer to 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.
Qualified Person
The scientific and technical information in this news release
was prepared in accordance with the standards of the Canadian
Institute of Mining, Metallurgy and Petroleum and National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101") and was reviewed, verified and compiled by Kincora's
geological staff under the supervision of Paul Cromie (BSc Hons. M.Sc. Economic Geology,
PhD, member of the Australian Institute of Mining and Metallurgy
and Society of Economic Geologists), Exploration Manager Australia,
who is the Qualified Persons for the purpose of NI 43-101.
JORC Competent Person
Statement
Scientific and technical information in this new release has
been reviewed and approved by Mr. Paul
Cromie, a Qualified Person under the definition established
by JORC and have sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity being undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'.
Paul Cromie (BSc Hons. M.Sc.
Economic Geology, PhD, member of the Australian Institute of Mining
and Metallurgy and Society of Economic Geologists), is Exploration
Manager Australia for the Company.
Mr. Paul Cromie consents to the
inclusion in this report of the matters based on his information in
the form and context in which it appears.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) or the Australian Securities
Exchange accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Kincora Copper Limited