- Kincora secures 100% interest in all NSW projects
- Acquisition of RareX Limited's ("RareX") carried 35% asset level interests in the Trundle, Fairholme, Jemalong, Cundumbul and Condobolin licenses for 40m Kincora Chess Depositary Interests ("CDIs") and a 1% Net Smelter Return Royalty ("NSR")
- Binding commitments for oversubscribed
A$2m private placement - Lead from largest shareholder,
Big Ben Holdings Pty Limited , subscribing for 10.4m Kincora CDIs - Further 30.2m CDIs to be placed with professional and sophisticated investors
- Experienced resource executive
Jeremy Robinson to join Kincora's board
"These transactions significantly increase the strategic value of, and funding options for, our NSW project portfolio and strengthen Kincora's balance sheet.
Kincora will hold 100% ownership in 8 projects, covering 2,367km2 in highly prospective settings within world-class gold-copper mineral belts in a Tier-1 jurisdiction.
Coupled with the oversubscribed
We are very pleased to welcome experienced resource director and executive
"RareX is a big believer in Kincora's NSW portfolio and industry leading technical team as evidenced by us becoming significant shareholders and converting our asset level interests. We expect these transactions to be a real catalyst to accelerate ongoing asset level partner discussions and also be a positive share price catalyst in the immediate to longer term.
I am personally very pleased to assist at the board level and support Kincora's endeavour to become a significant copper-gold player."
Acquisition
Kincora has executed a conditional agreement with RareX Limited ("RareX") to acquire its carried 35% asset level interests in the Trundle, Fairholme, Jemalong, Cundumbul and Condobolin licenses on
The RareX Transaction is subject to:
(a) | shareholder approval proposed to be obtained at an Annual General and Special Meeting ("AGM") to be convened in September; |
(b) | completion of the placement (described below) for an aggregate subscription amount of not less than 30 million CDIs ( |
(c) | the parties obtaining approvals required under the Mining Act 1992 (NSW). |
Completion will result in Kincora securing a 100% interest in all of the Company's NSW projects.
Consolidating the project ownership and removing the existing carried interests increases the strategic value of the NSW project portfolio. The portfolio already attracts interest from mid-tier and industry majors.
The acquisition provides optionality for project level funding and is expected to support an acceleration in ongoing asset level partner discussions at a time of increasing and very significant corporate activities in the district from the exploration stages (eg AngloGold Ashanti's up to
Capital Raising
As part of the acquisition, Kincora has received firm commitments from professional and sophisticated investors for a conditional placement to raise
A lead investor in the Brokered Placement was the Company's largest shareholder,
The proceeds from the placement will be used to continue ongoing drilling efforts across the NSW project portfolio, support corporate development initiatives and for general working capital purposes.
The CDI's issued under the Brokered Placement are to be issued within existing capacity under ASX Listing Rule 7.1/a and are subject to
Kincora's board, management and BBH have each separately indicated their support for the RareX Transaction and Brokered Placement, and, for the purposes of shareholder approvals at the upcoming General Meeting are expected to represent an approximate cumulative shareholding of 25%.
Board Appointment
Concurrent with the RareX Transaction, Mr.
Vended RareX licenses
In
The vended Trundle (EL8222), Fairholme (EL6552 and EL6915), Jemalong (EL8502), Cundumbul (EL6661) and Condobolin (EL7748) licenses all host demonstrated large scale mineral systems and are located in highly prospective settings on proven mineral and mining belts of the Lachlan Fold Belt, in Central West NSW.
This portfolio has previously attracted investment from
All most recent previous asset level counterparties withdrew within a 6-month period at the bottom of the previously commodity price cycle. No drilling or follow up exploration of note had taken place until Kincora's recent activities.
Consolidating the project ownership and removing the existing carried interests increases the strategic value of Kincora's NSW project portfolio. The portfolio already attracts current interest from mid-tier and industry majors.
RareX is listed on the ASX with the ticker "REE", and is formerly known as
This announcement has been authorised for release by the Board of
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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.
Neither the
SOURCE
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