KINCORA COPPER GETS BACK TO WORK ON ITS MONGOLIAN PROPERTIES

Kincora Copper(CVE:KCC) is set to resume field activities on the ground at its copper exploration properties in Mongolia shortly.

The company said that it will conduct infill mapping and geochemistry work on the Bronze Fox and Tourmaline Hill properties, which lie not far from the giant Oyu Tolgoi development currently being undertaken by Rio Tinto (LON:RIO).

There had been some speculation that Kincora might undertake a larger scale exploration programme involving a bigger drilling campaign now that a dispute about some of its licence areas has been cleared up, but the company is mindful that conserving cash in the current equity bear market for mining companies is crucial.

Kincora also said that it is considering “options both inside and outside Mongolia”, by which it means potential acquisitions.

These would either be near-term production or assets that were currently in the construction phase, and would thus be in a position to provide early cash flow and an early return.

Having said that though, the company remains in negotiations with Origo Partners, its biggest shareholder, regarding a $2.5 mln convertible note that was due on 19^th July this year.

The company said it “remains in discussions” with Origo and that there is “no certainty” that the note will be converted.

The note was issued back in 2012 when Kincora was on a role and Mongolia’s reputation hadn’t yet been tarnished with the bureaucratic mangle that subsequently severely delayed Oyu Tolgoi.

On issuance the note carried an 8.7% coupon, payable in Kincora shares, and was convertible at C$0.25 per unit, with each unit comprising one share and one warrant exercisable at C$0.40.

The exercise date for the warrants has now expired.

Source: Proactive Investors