Origo Partners PLC : Investee Company Update
Origo Partners Plc ("Origo") is pleased to announce that its portfolio company Kincora Copper ("Kincora" or the "Company"), has reached an agreement in principle with Forbes & Manhattan Inc. ("F&M") to acquire mineral exploration licences adjoining its Bronze Fox project in Mongolia.
Following the transaction, Toronto listed Kincora will hold licenses that cover an area close to 60,000 hectares, located 120km northeast of the Oyu Tolgoi project and on the same copper belt. The Company is expected to spend US$2 million on the exploration of the newly acquired license areas, formerly explored by Ivanhoe Mines, over the next two years.
The licences, which include the Tourmaline Hills copper gold project, an area assigned as a high priority target by Ivanhoe, were acquired from a subsidiary of Temujin Mining Corporation ("Temujin"), a private Mongolian mid-stage copper-gold exploration and development company. Under the terms of the transaction, Temujin, which is ultimately owned by F&M, a leading Canadian merchant bank, will be issued with up to 35 million shares in Kincora, representing a maximum 12.6 per cent equity stake. 20 million shares are being granted on completion of the transaction and the remaining 15 million shares will be issued conditional on the discovery of 1 million ounces of inferred gold within the license areas which contain large gold zones.
On completion of the transaction, Origo will hold a 28 per cent equity stake in Kincora, falling to 25 per cent if the full 15 million deferred shares are issued.
Commenting on today's announcement, Chris Rynning, the CEO of Origo, said:
"We are pleased that Kincora has reached this agreement in principle with F&M. The acquisition will consolidate a large contiguous area of prospective ground which has been subject to successful historic exploration work including significant surface sampling, IP and drilling, confirming the presence of multiple gold resource target areas. Temujin also hosts the extension of the West Kasulu copper mineralised zone"
"We continue to see a great deal of potential in Mongolia and Kincora remains our primary vehicle for developing copper and gold prospects in the country. This transaction will significantly enhance Kincora's prospects and we believe that the enlarged company will be in a stronger position to further develop the Bronze Fox and Tourmaline Hills deposits."
Following the transaction, Toronto listed Kincora will hold licenses that cover an area close to 60,000 hectares, located 120km northeast of the Oyu Tolgoi project and on the same copper belt. The Company is expected to spend US$2 million on the exploration of the newly acquired license areas, formerly explored by Ivanhoe Mines, over the next two years.
The licences, which include the Tourmaline Hills copper gold project, an area assigned as a high priority target by Ivanhoe, were acquired from a subsidiary of Temujin Mining Corporation ("Temujin"), a private Mongolian mid-stage copper-gold exploration and development company. Under the terms of the transaction, Temujin, which is ultimately owned by F&M, a leading Canadian merchant bank, will be issued with up to 35 million shares in Kincora, representing a maximum 12.6 per cent equity stake. 20 million shares are being granted on completion of the transaction and the remaining 15 million shares will be issued conditional on the discovery of 1 million ounces of inferred gold within the license areas which contain large gold zones.
On completion of the transaction, Origo will hold a 28 per cent equity stake in Kincora, falling to 25 per cent if the full 15 million deferred shares are issued.
Commenting on today's announcement, Chris Rynning, the CEO of Origo, said:
"We are pleased that Kincora has reached this agreement in principle with F&M. The acquisition will consolidate a large contiguous area of prospective ground which has been subject to successful historic exploration work including significant surface sampling, IP and drilling, confirming the presence of multiple gold resource target areas. Temujin also hosts the extension of the West Kasulu copper mineralised zone"
"We continue to see a great deal of potential in Mongolia and Kincora remains our primary vehicle for developing copper and gold prospects in the country. This transaction will significantly enhance Kincora's prospects and we believe that the enlarged company will be in a stronger position to further develop the Bronze Fox and Tourmaline Hills deposits."
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