VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2012) - Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE:KCC) has closed the first tranche of the previously announced private placement financing for gross proceeds of C$4,631,775 million through the issuance of 44,112,143 units at a price of C$0.105 per unit (the "Offering"). Each unit will consist of one common share and one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share of Kincora for a period of three years expiring November 14, 2015 at a price of C$0.19 per share. All securities issued under the Offering are subject to a four month hold period expiring March 15, 2013.
$538,906.50 of the gross proceeds of the Offering, forming part of a $1,994,700 subscription from an institutional group, is to be held in escrow pending approval of the group as an insider by the TSX Venture Exchange ("TSXV"). Kincora is also pleased to announce that Origo Partners plc, the Company's largest shareholder, has also subscribed for $2,000,000 of the Offering.
The Company paid finder's fees of $153,182 in connection with the Offering.
As previously announced on October 29th, 2012, the issuance of shares triggers a pro rata right of participation granted to certain shareholders of Temujin Mining Corp. ("Temujin"), in accordance with the terms agreed at the time of Kincora's acquisition of Golden Grouse LLC (refer to April 23rd press release). As per this agreement Kincora has provided written notice (the "Issuance Notice") to Temujin on October 29th, 2012. The Company proposes to include any subscriptions received from Temujin shareholders in a proposed secondary closing, which closing remains subject to TSXV approval.
Funds from the capital raising will be directed towards the continuation of drilling and exploration activities at the Company's flagship Bronze Fox project located in the emerging Oyu Tolgoi South Gobi porphyry copper belt in southeast Mongolia and for working capital.
About Kincora Copper Limited
Kincora Copper Limited is a mining exploration and development company based in Vancouver and listed on the TSX Venture Exchange that was formed in mid 2011.
Kincora's ambition is to be the leading listed independent copper exploration and development company in the highly prospective and proven Oyu Tolgoi South Gobi porphyry copper belt in southeast Mongolia. The Company is currently exploring its wholly owned Bronze Fox, Tourmaline Hills and North Fox projects which host an extremely large and strategically located mineralised footprint covering over 40km2.
The projects are situated only 250km from the Chinese border and within 140km of two large scale greenfield copper construction projects: Oyu Tolgoi, invested capital to date approximately US$6 billion and target production of 160,000t/ day; and, Tsagaan Suvarga, estimated capex US$1b and target production of 40,000t/ day. Other significant mines and associated infrastructure are being developed in this immediate region.
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.