Kincora Copper Limited has reached an agreement with Origo Partners Plc to renegotiate its obligations with respect to the Can$2.5 million convertible note held by Origo, which became due as of July 19, 2015. Kincora has a number of exploration projects in Mongolia.
Under the terms of the agreement Kincora will issue Origo a replacement note in the principal amount of $2.5 million which shall become due and payable on October 21, 2016 with interest at 8.7% per annum. This is payable on maturity in cash or shares of Kincora, at Origo’s election, with any such shares to be priced in accordance with TSX Venture Exchange policies.
The replacement note is also convertible during the note’s term at Origo’s election as and when Kincora undertakes an equity financing of not less than Can$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 can be called upon by Origo at its sole discretion. The replacement note remains subject to the acceptance of the TSX Venture Exchange.
Kincora’s president and CEO Sam Spring says, “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 an equity interest of approximately 25%.
“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.”