Vancouver, BC – March 4th, 2015 – Kincora Copper Limited (the “Company”, “Kincora”) (TSXV:KCC) is pleased to provide an update following the final resolution relating to the former two licenses held by its wholly owned Golden Grouse subsidiary that were revoked as part of the 106-license dispute and resulted in a C$6,952,000 impairment in our September 2013 financial statements.
Following due process and as specified in the competitive selection process, Kincora has regained the said licenses as new with a full 12-year term. The two Golden Grouse licenses were originally acquired in April 2012 by Kincora and are adjacent to our more advanced Bronze Fox project, again consolidating Ivanhoe’s original and high priority regional land package (refer Exhibit 1). The Western license in particular has a favourable structural setting and from previous surface exploration and shallow drilling is considered prospective for structurally controlled and/or epithermal high grade gold and also copper, the later convincingly confirmed with a fertile porphyry setting. The Western license hosts the Khunguut (copper-gold – extension of the West Kasulu prospect on the Bronze Fox license), Tourmaline Hills (gold-silver and gold-copper), West Fox (gold) and Southwest (gold) prospects.
Exploration activities in the one field season Kincora had unimpeded access to the Golden Grouse licenses focused on drilling at the West Kasulu prospect on the western neighboring margin of the Bronze Fox license, including hole F62 (>800m @ >0.40% CuEq, including 37m @ >1% CuEq), and its continuation into the Western license at Khunguut, with 15 holes also drilled at the Tourmaline Hills gold prospect. In all, 16 holes for 6,742 meters were drilled (all holes <400 metres, expect for one 407 meter hole) on the Western license by Kincora, with 23 and 24 holes historically drilled by Temujin Mining and Ivanhoe Mines respectively and a total of 33 trenches, before the license was revoked with no drilling at the West Kasulu prospect in 2014.
Commenting on today’s announcement, Sam Spring, President and CEO of Kincora, said:
“Uncertainty and the revocation of our Golden Grouse licenses has significantly impacted Kincora and general investor confidence towards Mongolia for over two years. We welcome this resolution in the most equitable and timely manner available to us, taking into consideration the interests of our shareholders and avoiding the courts. Regaining the returned Western license is particularly significant given its strategic importance, common geology with our Bronze Fox license, prospective previous results and favourable structural setting.
The 106-license dispute has materially impeded Kincora’s exploration efforts, including at Bronze Fox, and our corporate discussions and strategy. Following its conclusion we again have unimpeded control of our corporate strategy and are actively seeking potential options to now enhance shareholder value, both in Mongolia and elsewhere.
I would like to thank our Mongolian team for their considerable effort and persistence, and all those who have contributed to our lobby, to see this issue gain the attention it has and bring it to conclusion in the quickest possible timeline.”
Minter Ellison, a leading full service international law firm with a permanent office and physical presence on the ground in Ulaanbaatar since 2012 advised Kincora in this matter.
According to resident managing partner Elisabeth Ellis:
“Security of tenure and due legal process are fundamental cornerstones for continued foreign investment and private sector business activities in Mongolia. The return of Kincora’s licenses sends the message that the Mongolian Government recognizes this, as well as the importance of transparency in its dealings with participants in the mining sector.
This is timely and welcome news for foreign investors with assets in Mongolia and those considering an investment in the country.”SOURCE: Kincora Copper