SYDNEY, AUSTRALIA: RareX Limited, an Australian mineral exploration company focused on rare earths and gold, has announced that it has agreed to sell its 35% asset level interests in five copper-gold exploration licences in New South Wales to its joint venture partner, Kincora Copper Limited, for consideration comprising 40 million Kincora Chess Depositary Interests (CDIs) and a 1% Net Smelter Return Royalty (NSR).
The transaction will make RareX the largest shareholder of Kincora, with an 18% stake, comprising 40 million shares issued under this transaction and 5 million already owned by RareX. The transaction will also simplify the ownership structure and increase the strategic value of the NSW project portfolio, which includes the flagship Trundle project, the only brownfield porphyry project held by a listed junior in the Lachlan Fold Belt.
The Lachlan Fold Belt is Australia’s foremost porphyry region, hosting world-class copper-gold deposits such as Cadia-Ridgeway, Northparkes and Boda. The Trundle project is located less than 30km from the Northparkes copper-gold mine, which has a total endowment of over 20 million ounces of gold-equivalent1. The Trundle project has shown promising drill results in the past, but remains largely untested at depth.
The transaction is subject to Kincora obtaining shareholder approval, Kincora completing a placement of at least $1.5 million, and the parties obtaining approvals required under the Mining Act 1992 (NSW). Kincora has announced today that it has received binding commitments for an oversubscribed private placement of 40 million CDIs raising $2 million (before costs).
RareX Chairman Jeremy Robinson said: “The time has come to vend our NSW exploration interests to Kincora, clearing the path for a major to take over the funding and add to the exploration of these world-class projects. I look forward to assisting growing Kincora’s portfolio.”
As part of the transaction, Robinson will be joining the board of Kincora.
Empire Metals acquires 70% interest in Australian-based copper-gold projects