Binding Term Sheet Executed With Resilience Mining Over Asset Sale
Kincora Copper Ltd (TSXV:KCC) has signed a binding Option and Acquisition Agreement with Resilience Mining Mongolia Pty Ltd (RMM) covering Kincora’s Mongolian asset portfolio.
The Agreement provides RMM with a period of exclusivity, paid for in monthly cash instalments, to complete due diligence, legal agreements and capital market activities.
Kincora’s Mongolian asset portfolio includes the Bronze Fox mining license, neighbouring Tourmaline Hills exploration license and Red Well exploration license.
RMM will also secure the Southern Gobi “White Pearl” camp, and access to Kincora’s proprietary project generation database and Mongolian based exploration and administration teams.
Kincora Chairman, Cameron McRae, said that upon RMM having raised a minimum of A$6 million in new equity, listing on the Australian Securities Exchange (ASX) and exercise of the option, Kincora will retain a 20% effective free carried asset level interest for Kincora’s existing Mongolia portfolio until certain project milestones, have the right of first refusal for a 20% effective asset level interest in any new Mongolian projects, a 9.9% stake in RMM and the right to a board seat.
“Having commenced a strategic review for the Mongolia portfolio following the award of a mining license for Bronze Fox in September, we are very pleased to have signed this binding term sheet with RMM,” Mr McRae said.
“The framework provides attractive upside to Kincora, backing a well-motivated group, advancing an attractive portfolio and project generation strategy. The deal also enables Kincora to focus on our district scale pipeline and ongoing drilling activities in NSW, Australia.
“RMM are a very reputable group, well known to Kincora, who have been active on the ground in Mongolia since 2015. We look forward to working with Mark Stewart, Peter Reynolds and the RMM team in completing this transaction but also advancing the inherent value of our Mongolian portfolio and their Mongolia strategy.”