Kincora was unable to undertake planned exploration activities in the 2013 field season on the Golden Grouse licenses following uncertainty relating to criminal legal proceedings against former Government officials, which has brought into question the legal rights and interests for the owners of 106 exploration licenses. The Company is currently accessing avenues now available to it with receipt of official notification from MRAM expected to finally provide legal rights and potential recourse relating to the Golden Grouse licenses.
Consultations with key third neighbor governments have been ongoing and continue as the affected license holders work with the Government of Mongolia on resolving this situation. The Mongolian National Mining Association (“MNMA”) is also assisting where possible.
In April 2012, Kincora paid $5 million in script for the two licenses, incurred approximately $71,000 in legal costs relating to the acquisition and have spent approximately $1.85 million in exploration costs since. The acquisition of the licenses followed full detailed due diligence, with the licenses confirmed to be in good standing by MRAM, with exploration costs incurred following approval of the proposed exploration programmes which have been subsequently accepted, annual license fees incurred and licenses extended by MRAM. The Civil Code of Mongolia supports liability for damages caused by government officials if the rights of existing licenses holders are negatively impacted.
Kincora will continue to inform the market of any material developments relating to the Golden Grouse licenses.
The full detailed press release is attached. Also provided below are the links to our recently updated corporate presentation, fact sheet and positive preliminary field season results:
Exploration and Corporate update - October 23rd:
http://kincoracopper.com/
Presentation:
http://www.kincoracopper.com/
Fact Sheet:
http://www.kincoracopper.com/
Source:Kincora copper
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