KINCORA CONSOLIDATES THE MONGOLIAN SOUTHERN GOBI COPPER-GOLD BELT

The transaction will result in a consolidated landholding of over 1,500km2, the majority of the prospective exploration licenses which dominate a key geological trend between and along strike from the Oyu Tolgoi and Tsagaan Suvarga copper mines, supporting an industry leading proposition of copper/gold and gold targets. HPX’s proprietary Typhoon technology, instrumental in the discovery  and  delineation  of  high-grade  orebodies  at  Oyu  Tolgoi,  will  be  available  to  support Kincora with its exploration efforts. Cameron McRae, former President and CEO of Oyu Tolgoi is assisting Kincora in a managerial role to oversee the transition.

"Ibex’s portfolio was secured and targets advanced by former key executives of Oyu Tolgoi’s exploration team and focused on ‘mega scale’ gold rich copper porphyry targets. The consolidated portfolio covers the majority of the Oyu Tolgoi-Tsagaan Suvarga related Devonian copper trend along the island arc trace, often with transverse structures. Such a setting, and results to date, increases our confidence that this land holding can host clusters of orebodies similar to more mature porphyry belts globally,” commented Sam Spring, President & CEO.

“The merger is an opportunity that wouldn’t be available at other points of the Mongolian and commodity  cycles,  is  at  an  attractive  scrip  acquisition  price,  with  involvement  of  one  of  the industry’s leading groups who will be a new shareholder and provide proprietary technical services.

Kincora has been one of the most active copper exploration groups in the Southern Gobi for 5 years and with this transaction gains a number of advanced stage and large scale exploration targets supported by one of the largest regional geological and geophysical databases globally, which have had little or no drilling. The merger will support considerable synergies, scale and strategic appeal to our existing Bronze Fox and Tourmaline Hill Intrusive Complex targets, the recently secured Ulaan Khudag license and securing additional prospective land.

Recommencement  of  Oyu  Tolgoi  Stage  2  is  a  very  positive  step  forward  for  this  copper  belt, Mongolia as an investment destination and supports the merits of this transaction.”

Kincora has entered into a definitive Share Exchange Agreement with High Power Ventures Inc. (“HPV”), a private company controlled by HPX, whereby HPV’s wholly owned Mongolian subsidiaries,  Ibex  Land  Mongolia  LLC  and  Ibex  Mongolia  LLC  will  merge  with  Kincora’s respective land holding and services subsidiaries (the “Merger”). The Ibex subsidiaries are the remaining assets of Goviex Gold that was incorporated in 2007 to explore in Mongolia, China and Australia, and which has seen over US$25 million of investment. 

A Relationship Agreement with HPX has also been executed which provides for Kincora to access HPX’s  Typhoon  IP  technology,  other  proprietary  geophysical  and  industry  leading  technical services. Typhoon’s precursor, Zeus, was developed specifically for the undercover exploration effort at Oyu Tolgoi and in particular supported the discovery and delineation of the Hugo and Heruga orebodies, which make Oyu Tolgoi the largest high-grade group of Paleozoic porphyry deposits known in the world and the expected third largest copper mine globally once the recently approved underground development is complete.

Source: http://www.mining.com/web/kincora-consolidates-the-mongolian-southern-gobi-copper-gold-belt/