Kincora Copper to acquire Mongolian mining company

15 March 2012 (Last Updated March 15th, 2012 18:30)

Canada's Kincora Copper has announced that it will acquire Mongolian-based mining company Golden Grouse.

Canada's Kincora Copper has announced that it will acquire Mongolian-based mining company Golden Grouse.

Golden Grouse is a wholly-owned subsidiary of Temujin Mining and owns mineral exploration licenses 15075X and 15076X in Mongolia, adjacent to Kincora's Bronze Fox project.

Kincora president and CEO Igor Kovarsky said the acquisition of the properties is a great addition to the Bronze Fox project.

"Kincora now holds one of the largest land holdings along the highly prospective copper belt hosting Oyu Tolgoi," said Kovarsky.

Temujin and Canadian merchant group Forbes & Manhattan Forbes will be issued 20 million shares in Kincora, which represents a 12.6% equity stake in the combined entity on completion of the transaction.

Kincora will issue a further 15 million shares to Temujin upon the discovery of a minimum of 1 million ounces of inferred gold resources.

Kincora plans to spend $2m on the exploration of the acquired properties over the next two years.

The transaction remains subject to execution of a definitive agreement and receipt of all necessary regulatory approvals.