Kincora Welcomes Resolution of Oyu Tolgoi Dispute
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 19, 2015) - Kincora Copper Ltd. (the "Company", "Kincora") (TSX VENTURE:KCC) today commented on the joint announcement by Rio Tinto, Turquoise Hill Resources and the Government of Mongolia that provides a pathway forward in addressing the outstanding shareholder matters that since August 2013 have stalled the advancement of the underground mine at Oyu Tolgoi ("OT"). This dispute has significantly impacted investor sentiment towards Mongolia and related asset price valuations. Discussions are expected to resume with the proposed project financing lender group, lead by a blue chip syndicate of international financial institutions, export credit agencies and commercial banks to secure at least US$4 billion for OT Stage 2 development, that is anticipated to be the largest financing of its kind in the mining industry.
Resolution of this long standing and high profile dispute is another significant positive development for investors under Mongolian Prime Minister Saikhanbileg's leadership since forming an unprecedented super coalition Government in November 2014. As the PM stated in the May 18th press release, "Our joint agreement clearly positions Mongolia as an attractive country for investment and underscores the fact that Mongolia is open for business". Furthermore, it follows positive steps to address past mistakes with an improved Foreign Investment Law (October 2013), positive revision to the Mineral Law (July 2014) and resolution of the 106-exploration license dispute (the later only in March 2015 for Kincora).
"Since 2012 a number of legislative and political issues, coupled with select high profile Government disputes, have caused a collapse in foreign direct investment, asset valuations and reduced the ability of the declining number of interested groups to gain exposure to high quality projects in Mongolia's minerals sector," said Sam Spring, President and CEO.
"Resolution of shareholder matters relating to the next stage of Oyu Tolgoi's development will address the final of three significant items of push back that we have recently received from potential investors, following resolution of the 106-license dispute and reform to the Minerals Law (including lifting of the moratorium for issuing new exploration licenses). The improved Mongolian environment provides the foundation again for new entrants and increased activities, albeit within the context of difficult current global market conditions.
Globally porphyry deposits seldom occur in isolation, rather in significant clusters. The potential for another Oyu Tolgoi, or at least other major copper and/or gold projects in this proven fertile but underexplored copper belt are relatively unknown, impacted by Mongolia's legislative history and lack of modern systematic exploration. Recent legislative change provides a number of analogies to Chile's copper industry in the early 1970's, but being on the doorstep of the world's largest consumer of copper and in one of the world's fast infrastructure growth regions.
Kincora has commenced ethnography studies ahead of field season activities commencing with a particular focus on our recently returned Western license. Only in March, has Kincora regained unimpeded control of our corporate strategy having regained our previously disputed and C$7 million impaired licenses, and we are now actively seeking options to enhance shareholder value. Today we have the opportunity to turn Kincora not only into a successful copper explorer/developer based on its existing portfolio of attractive licenses and known targets, but a pre eminent first stop as investors revisit the potential for other significant discoveries in the OT mineralized trend".
About Kincora
Kincora Copper Ltd. is a junior resource company engaged in the acquisition, exploration and development of mineral properties, with a focus on copper-gold projects in Mongolia. For further information on the Company, please visit www.kincoracopper.com and refer to its corporate presentation http://kincoracopper.com/investors/corporate-presentation. Kincora has 309,774,451 issued and outstanding common shares.
Forward-Looking Statements
Certain information regarding Kincora contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Kincora believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Kincora cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Kincora currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
Kincora Copper Ltd.
Sam Spring
President and Chief Executive Officer
+61431 329 345
sam.spring@kincoracopper.com
www.kincoracopper.com