- $2.9 MILLION OF TOTAL DEBT REMOVED POST LOAN NOTE AND ACCRUALS
- $1 MILLION RAISED TO ADVANCE CONSOLIDATION AND EXPLORATION STRATEY
/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, July 28, 2016 - Kincora Copper Limited (TSX.V: KCC) ("Kincora" or the "Company") is pleased to announce that it has closed the previously announced non-brokered private placement for gross proceeds of $1,053,060 through the issuance of 3,510,200 shares at a price of C$0.30 per share (the "Offering"), subject to TSX-V approval.
Concurrent with, and on the same terms of, closing the non-brokered price placement 6,666,667 shares have been issued to Origo Partners Plc ("Origo), the Company's largest shareholder, for settlement of the outstanding $2,000,000 convertible note. Existing funds in escrowed of $500,000 have been returned to Origo and conversion of accrued interest into Kincora scrip is shortly expected, subject to TSX Venture Exchange approval and policies, as previously announced on July 27, 2016, fully settling the Origo note.
The Company further announces that, subject to regulatory approval it has entered into agreements with certain of its creditors pursuant to which it will agreed to settle debt in the aggregate amount of $212,750 in exchange for the issuance of an aggregate of 709,167 post-Consolidation Shares. This will result in Kincora having a debt free balance sheet and funds raised from the non-brokered private placement being used to advance the Company's exploration and consolidation strategy in the Southern Gobi copper-gold belt.
All shares issued are subject to a four-month hold period expiring November 29th, 2016.
Commenting on today's announcement, Sam Spring, President and CEO of Kincora, said:
"The Offering and debt conversions have been supported by key existing shareholders and results in a restructured and recapitalized platform for Kincora to move forward with. Almost $2.9 million of total debt (including previously escrowed funds) has been removed, with just over $1 million of cash injected and available to support our consolidation and exploration strategy. Kincora now has an improved corporate structure, balance sheet, and better alignment for creating value for shareholders, with the financial requirements of the transaction with the Ibex subsidiaries also satisfied.
Field season activities have been resumed as certain Mongolian processes and related approvals continue to progress relating to the Ibex transaction. Kincora looks forward to providing further details on our exploration plans and targets. Efforts are being advanced providing for a wider succession plan regarding the board and management team, with details on general strategy to be outlined in due course following achievement of these key initial milestones of closing the private placement, debt conversions and share consolidation".
The Company has also granted 2,742,950 options to directors of the Company, split equally with exercise prices of $0.375 and $0.525.