Business
Kincora Announces $4 Million Private Placement
VANCOUVER, June 1, 2016 /CNW/ - Kincora Copper Limited (the "Company", "Kincora") (TSXV:KCC) today announces a proposed non-brokered private placement of up to
About this update from Kincora Copper Limited
[{"type":"text","content":"VANCOUVER, June 1, 2016 /CNW/ - Kincora Copper Limited (the \"Company\", \"Kincora\") (TSXV:KCC) today announces a proposed non-brokered private placement of up to $2 million through the issuance of up to 5,333,333 shares at a price of $0.375 on a post-consolidated basis (proposed 10 old for 1 new share consolidation), following the May 25, 2016 agreement, providing for the merger of two Kincora subsidiaries with Ibex Land Mongolia LLC and Ibex Mongolia LLC (\"Ibex\"), entities indirectly controlled by High Power Exploration Inc (\"HPX\"). Concurrent with the Ibex mergers and the proposed $2 million non-brokered price placement, Kincora has received commitment from its largest shareholder, Origo Partners Plc (\"Origo\"), to convert the $2,000,000 convertible note outstanding (net of escrowed funds in the amount of $500,000) into equity on the same terms as the private placement, resulting in Kincora having a debt free balance sheet and funds raised from the non-brokered private placement being used to advance the Company's exploration and consolidation strategy in the Southern Gobi copper-gold belt. Firm commitments are in place to ensure the financial requirements of the Origo loan note conversion into equity alongside the private placement and mergers with Ibex are satisfied. Highlights Intention to raise up to $2 million via non-brokered private placement at a price of $0.375 on a post consolidated basis ($0.0375/sh pre-consolidation), a 25% discount to the last closing price. Origo has agreed to convert the $2 million principal and accrued interest outstanding under the net convertible note (principal is net of $500,000 escrowed funds released to Origo), on the same terms as the private placement, resulting in Kincora having a debt free balance sheet. As a result of the Ibex transaction, HPX will become a shareholder of Kincora and provide support via provision of its Typhoon geophysical technology and proprietary technical services. Kincora management and board are providing financial support to this offering, directors being compensated in stock only, with senior management salaries being over a third in scrip. Firm commitments are in place to ensure the financial requirements of the Origo loan note conversion into equity alongside the private placement and mergers with Ibex are satisfied. Strong interest...