Kincora Copper Receives Option Payment for the Sale of its Mongolian Assets
Kincora Copper (KCC.V) executed a term sheet and received a non-refundable option payment of US$1.5-million from Tumen Ail Coal LLC (TAC) providing it exclusivity to secure 100% of Kincora's Mongolian subsidiaries, the company said on Tuesday.TAC is an arms-length group with assets and operations in Mongolia, stated the company.The aggregate consideration for the transaction is US$10-million payable to Kincora, free and clear of any taxes, levies, or fees, but excluding certain contractual obligations of Kincora's, it said.A final agreement is expected by July 1, when the next milestone payment of US$3.5-million is due to Kincora, added the company."Upon execution of the definitive agreement, TAC shall deposit the final staged payment of US$5-million into an escrow account for release upon registration of the changes in the shareholders of the Mongolian subsidiaries which is anticipated to occur before year-end," it added.The company's shares were last seen up C$0.04 to C$0.94 on the TSX Venture Exchange.Price: $0.94, Change: $+0.04, Percent Change: +4.44%
