• Oversubscribed equity placement raises A$2.4 million (before costs) at A$0.055 per share
  • Very strong support from existing shareholders
  • All directors participating, for a total of A$0.13 million
• Kincora is well funded to advance the next phase of drilling focused on shallow porphyry targets across its portfolio of priority projects in the Lachlan Fold Belt, NSW
  • 13 targets and discovery opportunities across 5 projects
• Drilling activities scheduled to initially commence at the brownfield Trundle project in January 2023, testing 5 adjacent systems and separate large scale porphyry targets across an existing 3.2km mineralised strike
  • Four of these targets are following up open ore grade intervals, including:
    • 10m to end of hole at 1.99g/t gold and 0.12% copper from 36m (at Dunn’s North target); and,
    • recent 34m at 1.45g/t gold and 0.25% copper (at the Southern Extension Zone target)

Kincora Copper Limited (TSX-V: KCC) (ASX: KCC) is pleased to announce it has received binding commitments from unrelated professional and sophisticated investors for a A$2.4 million capital raising (before costs).

President & CEO, Sam Spring, and Chairman, Cameron McRae, commented:

“Following the oversubscribed offering Kincora is well funded and
positioned to commence a high impact and high conviction drilling
program. This will initially commence at our brownfield Trundle porphyry
project in January.

The program is focused on testing more and shallower targets. In total,
drilling 13 standalone targets across 5 projects, including 5 targets at
Trundle, that all offer significant scale copper-gold discovery potential.  

We are delighted with the very strong backing received and thank those
existing and new shareholders who participated.

The quantum and nature of support from shareholders, including all
directors, in the offering adds substance to Kincora’s high conviction for
very significant results across the NSW portfolio and potential for major
new porphyry discoveries at the Trundle project. ”

Placement

The funds raised will primarily be used for drilling activities focused on shallow porphyry targets across the Company’s portfolio of priority projects in the Lachlan Fold Belt, NSW. These include testing 13 prospects across 5 projects, comprising:

• Diamond drilling at the Trundle project, scheduled to commence in January 2023;
• Diamond and RC drilling at the Condobolin project;
• Diamond drilling at the Nevertire project (with existing NSW government cooperative funding grant support);
• Diamond drilling at the Nyngan project (with existing NSW government cooperative funding grant support); and,
• Aircore drilling at the Fairholme project.

Separately, maiden exploration programs are expected to commence at the Cundumbul project under, and funded by, the exploration alliance agreement with Earth AI (see the October 6, 2022, press release “Alliance with Artificial Intelligence Explorer for Cundumbul project” for further details).

Furthermore, the Company continues to seek to extract appropriate value from its wholly owned Mongolia asset portfolio, which includes a large JORC resource on an existing mining license at the Bronze Fox project.

The Joint Lead Managers and Bookrunners for the Placement were Bridge Street Capital Partners and Morgans Corporate.

The Placement will result in the issue of up to 43,636,364 ordinary shares (represented by CDIs) at a price of A$0.055 per share (the equivalent Canadian share price of $0.05) of which 28,703,570 ordinary shares will be issued in a first tranche under the Company’s placement capacity under ASX listing rule 7.1 (16,420,352 shares) and ASX Listing Rule 7.1a (12,283,218 shares) and 14,932,795 ordinary shares subject to shareholder approval which is expected to be sought at a general meeting proposed to be held in January 2023.

The issue price of A$0.055 per share represents a 20.3% discount to last close (December 7, 2022) and a 15.2% discount to the 15-day VWAP.

Settlement of the Placement is expected to occur on December 15, 2022, with Placement shares expected to be allotted (pursuant to Listing Rules 7.1 and 7.1A) and to commence trading on December 16, 2022. An Appendix 2A confirming the exact allotments will be issued on the same date.

The Company’s total issued ordinary shares outstanding post the first and second tranche issuances is anticipated to be 166,471,542.

Trundle Project background

The Trundle Project is located in the Junee-Narromine volcanic belt of the Macquarie Arc, less than 30km from the mill at the Northparkes mines in a brownfield setting within the westerly rift separated part of the Northparkes Igneous Complex (“NIC”). The NIC hosts a mineral endowment of approximately 24Moz AuEq (at 0.6% Cu and 0.2g/t Au) and is Australia’s second largest porphyry mine comprising of 22 intrusive porphyry discoveries, 9 of which with positive economics.

The Trundle Project includes one single license covering 167km² and was secured by Kincora in the March 2020 agreement with RareX Limited (“REE” on the ASX).

For further information on the Trundle and Northparkes Projects please refer to Kincora’s website:  https://kincoracopper.com/the-trundle-project/