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Kincora raises C$6M for Mongolia exploration

Mongolia-focused explorer Kincora Copper is hoping to raise C$6 million (US$4.45 million) through a private placement to fund drilling and earlier stage exploration at Bronze Fox and East Tsagaan Suvarga.
Kincora raises C$6M for Mongolia exploration Kincora raises C$6M for Mongolia exploration Kincora raises C$6M for Mongolia exploration Kincora raises C$6M for Mongolia exploration Kincora raises C$6M for Mongolia exploration

Kincora Copper is raising funds to explore its projects in Mongolia

The private placement includes 60 million 10c units, each comprising one share and one warrant entitling a holder to acquire a further share at 25c each for a two-year term.

The company's largest shareholder, LIM Asia Special Situations Master Fund, has said it will subscribe for its pro rata share of the offering, which is about 28%, after an independent technical review of Kincora's targets and proposed work programmes. 

Kincora also said it had received strong indicative support from insiders, including existing and new shareholders.

Chairman Cameron McRae said he was glad Kincora had attracted a strong cornerstone position from its largest shareholder and interest from other experienced institutional resource sector specialist and high net-worth investors.

"This offering has been structured to align the immediate and medium-term capital markets strategy to our asset portfolio of five standalone, large and drill ready porphyry targets. Success on any one of these targets would indicate a new globally significant copper discovery," he said.

CEO Sam Spring said the offering would "provide a strong foundation for the drill bit to again drive Kincora's valuation going forward, ramping up our exploration and expansion activities".

In March, Spring told Mining Journal Kincora was gearing up to drill anywhere between 9,000 and 18,000m at Brown Fox and Tsagaan Suvarga in the hope of making the first globally significant discovery since 2014.

Kincora's shares (TSXV:KCC) were trading at 8.5c Tuesday, down 5.56% from the previous close and 34.6% lower than at the start of the year.