VANCOUVER, Oct. 22, 2015 /CNW/ - Kincora Copper Limited (TSX.V: KCC) ("Kincora" or the "Company"). Further to its news release of August 6, 2015, the Company is pleased to announce that it has reached an agreement with Origo Partners Plc ("Origo") to renegotiate the obligations of the Company with respect to the $2,500,000 convertible note held by Origo, which came due as of July 19, 2015.
Under the terms of the agreement Kincora will issue Origo a new note (the "Replacement Note") in the principal amount of $2,500,000, which Replacement Note shall become due and payable on October 21, 2016 with interest at 8.7% per annum, payable on maturity in cash or shares of Kincora, at Origo's election, any such shares to be priced in accordance with the policies of the TSX Venture Exchange (the "Exchange").
The Replacement Note is also convertible during the term of the Replacement Note at Origo's election as and when Kincora undertakes an equity financing of not less than $500,000, with conversion being on the same terms as such equity financing.
In support of its obligations under the Replacement Note, Kincora has also agreed to put $500,000 in escrow, which sum can be called upon by Origo at its sole discretion.
The Replacement Note remains subject to the acceptance of the Exchange.
Sam Spring, President and CEO commented, "I am pleased with the outcome of the replacement note, which is similar to the previous arrangement.
Origo has been and remains a long term and supportive shareholder, being instrumental in the formation of Kincora, and is our largest shareholder with a ~25% equity interest. The replacement note reiterates Origo's backing of management and Kincora's strategy, which includes continued work on our existing prospects, potentially expanding our footprint and pursuing more advanced opportunities that would not otherwise be available at other points of the commodity cycle".
Kincora Copper Limited. is a junior resource company engaged in the acquisition, exploration and development of mineral properties, with a focus on copper-gold projects in Mongolia. For further information on the Company, please visit www.kincoracopper.com and refer to its corporate presentation http://kincoracopper.com/investors/corporate-presentation. Kincora has 309,774,451 issued and outstanding common shares.
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.
SOURCE Kincora Copper Limited
For further information: Sam Spring, President and Chief Executive Officer, [email protected], +61431 329 345, http://www.kincoracopper.com