Kincora Copper announces the closing of the transactions with Origo Partners PLC
Vancouver, Canada – July 18, 2011 – Kincora Copper Limited (TSX.V: KCC) (the “Company”). Further to its news releases of April 14, 2011 and June 20, 2011, the Company is pleased to announce the closing of the transactions (the “Transactions”) contemplated by the share purchase agreement with Origo Partners plc (“Origo”), an AIM-listed company, as more particularly detailed in the filing statement of the Company dated June 28, 2011, a copy of which is filed on SEDAR at www.sedar.com. In connection with the closing of the Transactions the Company has changed its name from Brazilian Diamonds Limited to Kincora Copper Limited (KCC:TSX.V).
On closing of the Transactions the Company acquired a 75% interest (the “75% Interest”) in Kincora Group Limited, a BVI company the principal asset of which is the Bronze Fox copper/gold project (the “Bronze Fox Project”) in Mongolia. The remaining 25% interest is held by Duchintav Khojgor, a Mongolian businessman. As consideration for the acquisition of the 75% Interest the Company issued 49,118,639 shares to Origo, which shares are subject to escrow in accordance with policies of the TSX Venture Exchange. The Company also paid US$6,000,000 to Duchintav Khojgor and invested approximately $5,000,000 in Kincora Group Limited, which monies are to be applied to exploration activities on the Bronze Fox Project.
Ocean Equities Limited (“Ocean”), a UK based brokerage firm, was issued 896,659 share purchase warrants exercisable at $0.35 per share for a term of 3 years as a finder’s fee in connection with the closing of the Transactions.
Concurrent with the closing of the Transactions the Company also issued 34,671,660 shares by way of private placement (the “Private Placement”) at $0.35 per share for proceeds of $12,135,081. These shares are subject to a hold period expiring November 15, 2011. In connection with the Private Placement the Company paid finders’ fees to Ocean in the amount of $128,100 and issued 1,324,654 shares to Resource Investment Capital Limited, a Mongolian corporate finance advisor.
Proceeds from the Private Placement were applied to fund the Transactions with the balance to be applied to general working capital.
Following the closing of the Transactions and the Private Placement the Company has 110,665,465 shares issued and outstanding of which 49,896,439 shares held by Origo are subject to escrow restrictions.
The board of the directors of the Company is now comprised of Stephen Fabian, President and CEO, David Cowan, a partner with the law firm of McMillan LLP in Vancouver, Luke Leslie, Head of Mining with Origo, John Rickus, Senior Geologist with Origo and Altai Khangai, COO and acting CEO of the Mongolian Stock Exchange.
The Company has been advised by the TSX Venture Exchange that trading in the Company’s shares under the symbol KCC will resume at the opening of the market on Monday, July 18, 2011.
For further information contact:
Stephen Fabian, President & CEO
Tel: + 33 6439 10649
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.