Kincora Copper (ASX:KCC,TSXV:KCC) announced on Wednesday (October 16) that it has expanded its partnership with Fleet Space Technologies as it works to advance its Wongarbon project in New South Wales, Australia.
The expanded partnership will include a listed equity investment, as well as multiphysics surveys to identify and refine targets at Wongarbon. Fleet Space will also have the right to drill test targets to earn an asset-level interest.
Kincora said it will raise AU$1.27 million via a strategic investment by Fleet Space, along with participation from existing major shareholders, directors and new investors. Fleet Space will contribute AU$400,000.
Proceeds of the financing will primarily be used to undertake ambient noise tomography and gravity surveys at Wongarbon, which has never been drilled, along with drilling and exploration at the Condobolin project.
Under the deal, Fleet Space has the right to earn a 20 percent stake in Wongarbon by drilling at least 2,000 meters.
Located in the interpreted extension of the Macquarie Arc’s Northern Molong Belt, Wongarbon is considered by Kincora to be a strong prospect for a new large-scale porphyry copper-gold complex.
“Kincora and Fleet Space strongly believe the Wongarbon project has the potential to be a new porphyry district and it is a prime candidate for major discovery,” said Sam Spring, president and CEO of Kincora.
He added, “The results of our recent multiphysics surveys at our Nyngan Project are pending and the structure of this expanded partnership with Fleet Space provides unique alignment.”
Fleet Space will be the operator of the multiphysics surveys at Wongarbon, deploying its proprietary ExoSphere technology stack. Deployment will be done end to end, from target generation to drill testing at Wongarbon. Fleet Space notes that it has invested significantly in the Macquarie Arc, giving it unique knowledge of the area.
“Wongarbon’s geological and geophysical setting is favourably located in a highly prospective area of the arc,” commented Federico Tata-Nardini, director, CFO and financial strategy and investment officer at Fleet Space.
“It has clear analogues of the nearby porphyry complexes and existing Tier 1 deposits. We believe the project is at the stage where we can add significant value and mutually share major discovery potential with Kincora.”
The operation will be the first new exploration done at the project in almost 30 years and will advance soon. Kincora said the Fleet Space partnership is its fifth recent deal and that it is proposing further partnerships for its other projects.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
