Kincora Copper (ASX:KCC) has completed an all-scrip acquisition deal with RareX (ASX:REE) to secure 100% ownership of its entire New South Wales project portfolio.
Under the agreement, Kincora has issued to RareX 40 million shares and a 1% net smelter return royalty in return for RareX’s 35% interest in the Trundle, Fairholme, Jemalong, Cundumbul, and Condobolin projects.
With this transaction now complete, Kincora says it has increased the strategic value of its project portfolio, consolidating its ownership and removing the existing carried interests.
It comes after the company strengthened its funding position with a previously announced $2 million capital raising during the September quarter.
Prior to the acquisition, RareX had beneficial ownership and control over about 4.9 million common shares in Kincora, representing 2.4% of the outstanding shares of Kincora.
Now, following the issue of the Kincora shares under the purchase arrangement, RareX has direct ownership and control over an aggregate of about 44.9 million common shares of Kincora, representing 18.2% of the issued and outstanding common shares of Kincora.
Further, RareX Founder and Chairman Jeremy Robinson has joined Kincora as a Non-Executive Director and a member of the company’s remuneration committee.
Robinson has 18 years of corporate finance experience in investment firms and in-house, holding a Bachelor of Commerce from the University of Western Australia majoring in Corporate Finance, Investment Finance, and Marketing.
Kincora Chairman Cameron McRae says the now-wholly-owned New South Wales tenements make up a ‘highly prospective and district-scale project portfolio’.
“This transaction supports a pivot in funding strategy seeking dilution at the project rather than solely at the listed company level as has been in the past.
Completion of the RareX acquisition is expected to be a major catalyst for ongoing discussions and negotiations for the NSW projects.”
“Completion of the RareX acquisition is expected to be a major catalyst for ongoing discussions and negotiations for the NSW projects”
McRae also welcomes Jeremy to the board and acknowledges his ‘significant’ inputs to the team on ‘a number of value-adding initiatives’.
“We look forward to leveraging Jeremy’s commercial experience and value-added focus.”
Kincora Copper is an ASX-listed copper-gold-focused explorer with assets in Australia and Mongolia.
As of 30 September, the company had $1.8 million in cash and cash equivalents at hand.
Write to Aaliyah Rogan at Mining.com.au
Images: Kincora Copper
