Australian company Woomera Mining has signed a binding agreement to acquire up to 100% of the stake in Kincora Copper’s Bronze Fox copper-gold project in Mongolia’s South Gobi copper belt.
Under the agreed terms, Woomera will invest $4 million over five years to obtain an 80% stake in the project. Woomera can then acquire the remaining 20% stake for $10 million in cash and 1% net smelter royalty, or form an 80/20 joint venture.
In addition, Woomera will issue A$450,000 ($297,000) in shares and pay A$100,000 in cash to Kincora. Woomera will manage exploration programs during the revenue period and plans to prepare for a major exploration campaign.
Located 450 km south of Ulaanbaatar, the 175 sq. km Bronze Fox project includes three undiscovered, large and closely spaced porphyry systems, as well as other early-stage copper and gold deposits.
Woomera CEO Ralf Kriege said: “This transaction provides Woomera with the opportunity to explore for high-quality, large-scale copper and gold deposits with global potential in a well-known porphyry copper region.”
The company plans to commence an exploration program at Bronze Fox to focus on new discoveries, increase the resource base and expand into higher-grade areas of the system. “We are committed to working closely with Kincora to unlock the full potential of the Southern Gobi Project,” Kriege added.
Kincora's previous drilling has identified three large porphyry complexes, highlighting the potential for new discoveries and resource delineation.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
