28th Mar 2014 11:02
LONDON (Alliance News) - Origo Partners PLC Friday said portfolio company Kincora Copper Ltd has raised CAD5.0 million in an oversubscribed private placement with new and existing investors.
The China-focused private equity firm participated in the placing, investing USD400,000, and now has a 25% shareholding in Kincora.
The funds will be used for drilling and other exploration activities at Kincora's flagship Bronze Fox license in the upcoming 2014 field season.
The private placement has seen an initial 91.5 million units issued at a price of CAD0.05 per unit, raising CAD4.6 million before expenses. A second tranche of 8.5 million units will be issued, raising an additional CAD425,000, subject to the placee receiving regulatory and shareholder approvals.
Each unit consists of one common Kincora share and one common Kincora share purchase warrant.
Each warrant entitles the holder to acquire one common share in Kincora for a period of two years from the date of issue at a price of CAD0.105 per share.
Origo Chief Executive Chris Rynning said Kincora is demonstrating the "significant potential" of the Bronze Fox deposit in the Oyu Tolgoi copper belt in south-east Mongolia.
"Kincora is the last of the independent copper exploration juniors in Mongolia, despite having the most advanced and prospective project, and to complete an oversubscribed fundraising at this point in the cycle and against the current uncertain global backdrop is a huge vote of confidence in Kincora's management team and the quality of the underlying asset," Rynning said in a statement.
Origo Partners shares were Friday quoted at 7.50 pence, up 1.7%.
By Samuel Agini; [email protected]; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
OPP.L