Kincora Copper Limited

Kincora Copper Limited

December 11, 2014 06:00 ET

Kincora Copper: Positive Milestone Achieved for 106-License Dispute

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 11, 2014) - Kincora Copper Limited (the "Company", "Kincora") (TSX VENTURE:KCC) is pleased to announce that it has agreed with MRAM costs relating to the former licenses held by its wholly owned Golden Grouse subsidiary that were revoked as part of the 106-license dispute. These direct costs will form a "threshold price", the starting point for the competitive tender process expected to be held on 9th January 2015, with a potential second and final tender on 9th February, if needed, to reissue the revoked licenses.

It is specified in the competitive selection that if such a former license holder participates in the tender process but does not win and regain the license(s), its expenses incurred (the agreed "threshold price") will be paid, or reimbursed as cash compensation by the successful bidder, with the license being granted with a full term of tenure (ie up to 12 years) either to the former license holder or successful third party bidder. To date 23 impacted licenses for an estimated cumulative US$2.49 million of expenditure have been retendered, with 11 licenses returned to the former holders, 3 remaining property of the State following no bids, 4 acquired by third parties and 5 having a second and final tender on January 9th.

A total of 18 licenses are proposed to be tendered on 9th January 2015 and we note this batch of tenders, the third relating to the previously revoked 106-licenses, is the first to include licenses with significant previous expenditure and follows the recent change in Mongolian Prime Minister and subsequent formation of an unprecedented super coalition government. Recently appointed Prime Minister Ch.Saikhanbileg has repeatedly acknowledged the impact of the 106-license dispute as a factor negatively impacting investor confidence and the economy, with MRAM to shortly present to the newly formed Cabinet progress relating to the 106-license dispute and issuance of new exploration licenses following respective legislation being approved the first week of July.

Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:

"Uncertainty and the revocation of our Golden Grouse licenses, as part of the 106, have significantly impacted Kincora and general investor confidence towards Mongolia for almost two years, and we welcome this important step forward to conclude our dispute in an equitable manner.

The 106-license dispute has materially impeded Kincora's exploration efforts, corporate discussions and strategy, and we look forward to this matter being resolved early in 2015 with the former licenses either returned as new, with a full 12 year term (a period that is globally very competitive), or the receipt of a relatively significant sum of compensation, particularly in the context of the current market, reflecting previous acquisition and exploration costs.

It is worth highlighting that other impacted licenses that have incurred significant expenditure are included in the third batch of licenses to be initially retendered on January 9th, this for the first time is more than just an administrative process, as the newly appointed Prime Minister and super coalition government look to address impediments to private sector activity that emerged under the previous regime. Resolution of the 106-license dispute and expected near term opening up of new exploration ground, for the first time since early 2010, is expected to support a more attractive exploration sector in Mongolia."

Kincora will continue to inform the market of progress relating to our Golden Grouse licenses.

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.

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