Kincora Copper (ASX:KCC) has increased its cash on hand by $4 million with the completion of its previously announced private placement which was fully subscribed.
Veteran North American investors Rick Rule and Jeff Phillips were cornerstone investors in the placement, which was priced at C$0.30 ($0.33) per unit.
Another participant was investment firm Big Ben Holdings, which contributed $449,150 of the total to acquire 1.5 million units, which comprise one share and one share purchase warrant exercisable for C$0.50 within three years.
Prior to the placement, Big Ben already owned roughly 3.8 million shares and 807,599 options.
The investor now owns 5.3 million shares, 1.5 million warrants and 807,599 options, giving it a stake of 12.38% on a non-diluted basis and 17.2% on a partially diluted basis if the warrants and options are exercised.
Kincora plans to use the cash raised to fund its ongoing project generation strategy, undertake significant drilling at its 100% owned Condobolin gold-base metals project, as well as for general working capital and corporate purposes.
The company has also completed a 10-for-one consolidation of its shares on the TSX Venture Exchange and its chess depositary interests on the ASX.
Kincora is preparing for its next phase of exploration in the Northern Junee-Narromine Belt (NJNB) after seeing the early results of first drilling at its Nyngan and Nevertire projects in New South Wales.
Drilling at the Nevertire South Project intersected a large, multi-phase Macquarie Arc volcanic and intrusive complex.
This is the first drilling undertaken since Kincora consolidated the tenement ownership, which provided the company with over 8km of untested strike.
The Nyngan, Nevertire South and Nevertire projects are included in two earn-in and joint ventures with AngloGold Ashanti (NYSE:AU), which can earn a majority stake in five projects in Kincora’s NJNB portfolio by spending up to $100 million.
Write to Angela East at Mining.com.au
Images: Kincora Copper
