Kincora Secures US$1.5 Million Option Payment for Mongolian Asset Sale

Mongolian Divestment Advances with Significant Option Payment

Kincora Copper Limited (ASX & TSXV: KCC) has taken a concrete step toward divesting its Mongolian assets, receiving a non-refundable US$1.5 million option payment from Tumen Ail Coal LLC (TAC). This payment grants TAC exclusive rights to acquire 100% of Kincora’s Mongolian subsidiaries under a Term Sheet executed recently. The total consideration for the transaction is US$10 million, structured in staged payments, with the next US$3.5 million installment due upon signing definitive agreements by July 1, 2026.

The final US$5 million payment will be held in escrow, to be released upon completion of shareholder changes anticipated before the end of the year. This staged approach provides Kincora with immediate capital while maintaining clear milestones toward divestment completion.

Strategic Shift Toward Australian Gold-Copper Projects

This divestment aligns with Kincora’s broader strategy to concentrate on its Australian portfolio, particularly its flagship projects in the Lachlan Fold Belt and the Cobar basin. The company continues drilling at Nevertire South and Condobolin, advancing its hybrid project generator model which has unlocked over A$10 million in partner-funded exploration since late 2024. Partner-funded programs have supported more than 20,000 metres of drilling, underscoring Kincora’s capital-efficient approach to advancing multiple porphyry targets simultaneously.

Notably, Kincora has been accelerating exploration efforts with new technology partnerships and ongoing drilling campaigns, as highlighted in recent updates on partner-funded exploration programs and the Condobolin drilling campaign. These initiatives reinforce the company’s focus on scalable, high-potential projects while monetising non-core assets.

Transaction Risks and Forward-Looking Considerations

While the option payment is non-refundable, the transaction remains subject to definitive agreements and regulatory approvals, with conditions that could affect timing and completion. Kincora cautions that various risks, including jurisdictional challenges, counterparty issues, and market conditions, could influence the outcome. The company’s forward-looking statements highlight these uncertainties, reminding investors that actual results may differ materially from current expectations.

Nevertheless, the receipt of the US$1.5 million option payment provides a tangible financial boost and validates interest in the Mongolian portfolio. This capital injection could support Kincora’s ongoing exploration activities and reinforce its position as a leading institutional-grade explorer on the ASX and TSXV.