Vancouver-based Kincora Copper (CVE:KCC) announced Monday a non-brokered private placement financing of a convertible note with Origo Partners, for up to $2.5 million, payable three years from the date of issuance.
The mining exploration and development company said the convertible
note bears interest at 8.7 percent per year, priced at the time of
issuance in accordance with the TSX Venture Exchange.
The note is convertible into units of the company at any time after the date of issuance at a price of 25 cents each.
Each unit is made up of one common share and one purchase warrant,
where one warrant is exercisable to purchase another common share at 45
cents for a term ending at the maturity date.
Kincora has also agreed to give Origo certain pre-emptive rights to purchase further equity in the company, it said.
Origo is currently the largest shareholder of Kincora, holding a
total of more than 46.37 million common shares, or 29.28 per cent of the
Kincora will direct the proceeds of the private placement toward
further developing its mineral properties in Mongolia and for general
The company announced in late April that it had closed its previously
announced acquisition of Temujin Mining Corp.’s subsidiary, Golden
Grouse, which was first reported in January.
Temujin is a portfolio company of investment firm Aberdeen International
and a member of the Forbes Manhattan Group. Golden Grouse is a
Mongolian company that holds the mineral exploration licenses 15075X and
15076X, next to Kincora's Bronze Fox project.
Kincora issued 20 million shares to Temujin, and on closing, Temujin
kept 1.51 million Kincora shares and paid a dividend for the remaining
stock to its shareholders.
Kincora will issue another 15 million shares to Temujin upon the
discovery of one million inferred ounces of gold within four years of
the deal’s close.
The company also agreed to spend $2 million on exploration on the
acquired properties over the next two years. If Kincora does not
complete the “minimum work” in the two-year period, it will issue 15
million shares to Temujin.
is focused on copper-gold deposits in Mongolia. Its key asset is the
Bronze Fox copper-gold deposit, which rests in the south-east of
Mongolia, along the Oyu Tolgoi copper belt, 200km from the Chinese
border, and roughly 140km northeast of the famous Oyu Tolgoi copper-gold