Kincora Copper, an Australian copper-gold explorer, has finalised the purchase of RareX’s 35% stake in several licences in New South Wales (NSW), Australia.
The transaction was announced in July this year and includes Trundle, Fairholme, Jemalong, Cundumbul and Condobolin licences.
As part of the transaction, Kincora issued 40 million of its CDIs and agreed to pay a 1% NSR royalty.
Concurrent to the transaction, Kincora undertook a $2m (A$2.99m) placement, with RareX becoming Kincora’s largest shareholder.
Through the placement, RareX holds 45 million or 18% of its shares. Of the 45 million shares, 40 million were issued under the transaction and five million are already owned by the company.
With the transaction now completed, Kincora has consolidated project ownership, increasing the strategic value and attractiveness of the projects.
The portfolio is said to have drawn interest from mid-tier and industry majors. With the consolidated ownership, the prospect of project-level funding is improved.
The company claims to have strengthened financially and can now undertake large-scale targets and designed drill programmes at the projects.
RareX founder and chair Jeremy Robinson has joined Kincora’s board as a non-executive director.
Kincora Copper chairman Cameron McRae said: “Completion of the acquisition with RareX results in Kincora holding a 100% interest in a highly prospective and district-scale project portfolio in NSW. 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.
“I now formally welcome Jeremy to the board and acknowledge his already significant inputs to the Kincora team on a number of value-adding initiatives. We look forward to leveraging Jeremy’s commercial experience and value-added focus.”
