Kincora Copper and Woomera Mining Finalize Mongolian Earn-In Agreement
KCC (KCC) Share Update September 2024 Sunday 29th
Kincora Copper Finalizes Mongolian Earn-In Agreement with Woomera Mining
Kincora Copper Limited (TSXV & ASX: KCC) has finalized an earn-in and joint venture agreement with Woomera Mining Limited (ASX: WML) for its Mongolian assets, setting the stage for an aggressive drilling program at the Bronze Fox copper-gold project.
Instant Summary:
- Final documents executed and shareholder approvals gained for the earn-in and joint venture agreement.
- Woomera to commence an aggressive initial drilling program at the Bronze Fox copper-gold project.
- Woomera has the right to spend up to US$4 million to earn an 80% interest.
- Kincora receives $100,000 in cash payments and 180 million shares and options in Woomera.
- Agreement allows Kincora to focus on flagship NSW copper-gold projects.
Agreement Finalization
Kincora Copper Limited has officially executed final agreements with Woomera Mining Limited, allowing Woomera to earn into Kincora's wholly owned Mongolian subsidiaries. This agreement provides Woomera exposure to the Bronze Fox copper-gold project, located in the rapidly emerging Southern Gobi copper belt.
All requisite approvals and conditions have been met, including the finalization of Woomera's $1.7 million capital raising and the execution of the Earn-in Implementation Agreement (EIA) on September 29, 2024. This agreement outlines the terms of Woomera's operations at the Bronze Fox project, with all shareholder and regulatory approvals now secured.
Drilling Program
Woomera is set to commence an initial 2250-3250 meter diamond core drilling program before the end of the year. This program targets a shallower higher-grade structural zone and aims to increase the existing resource base. The drilling will also support an application for a second mining license for the full Bronze Fox project.
Financial Details
Under the terms of the agreement, Woomera has the right to spend up to US$4 million to earn an 80% interest in the project. Kincora has received $100,000 in cash payments and will shortly be allotted 180 million shares and 180 million attaching options in Woomera, making Kincora the largest shareholder in Woomera.
Strategic Focus
This agreement allows Kincora to concentrate on its flagship NSW copper-gold projects located in the highly prolific Macquarie Arc. Kincora's strategy involves partnering with funding and technical partners to unlock the value of its existing project pipeline.
Sam Spring, President and CEO of Kincora, expressed excitement about the transformational period ahead, highlighting the strategic value of the Bronze Fox project as the fourth major porphyry district in the Southern Gobi copper belt.
The finalization of this agreement is expected to have a positive impact on Kincora's stock, as it allows the company to focus on its flagship projects while leveraging Woomera's resources to advance the Bronze Fox project. The aggressive drilling program planned by Woomera could lead to significant value catalysts, potentially increasing investor interest and confidence in both companies.
Investor Reaction:
Analysts are likely to react positively to this agreement, as it demonstrates Kincora's strategic approach to unlocking value from its project pipeline. The potential for significant resource expansion at the Bronze Fox project could attract further investment and boost stock prices for both Kincora and Woomera.
Conclusion:
Investors should keep a close eye on the progress of the drilling program at the Bronze Fox project and monitor any updates from Kincora and Woomera. This agreement marks a significant step forward for both companies, and the results of the drilling program could have substantial implications for their future growth and stock performance.