Kincora Copper has forged a substantial collaboration with AngloGold Ashanti (AngloGold) for its copper-gold project situated in the Northern Junee-Narromine Belt (NJNB) in Australia.

In a press release on Tuesday, Kincora announced the execution of a definitive agreement, allowing AngloGold to potentially acquire up to 80% of the Nyngan and Nevertire licenses forming the NJNB project in two phases.

Following this announcement, shares of Kincora Copper surged by 57% to C$0.055 apiece as of 3 p.m. EDT, resulting in a market capitalization of C$11.9 million ($8.7m).

Under the initial phase, AngloGold may secure a 70% interest by investing A$25 million in exploration expenses over seven years, leading to the formation of a joint venture. This phase includes a minimum expenditure of A$2 million within the first two years, during which Kincora will oversee all exploration activities and be entitled to a 10% management fee.

In the subsequent phase, AngloGold can earn an additional 10% interest by either completing a pre-feasibility study (PFS) or funding an additional A$25 million of expenditure over three years, bringing its total spending to A$50 million.

As part of the agreement, the Kincora team will conduct drilling tests on various large intrusive-related copper-gold targets. The property hosts two largely unexplored volcano-intrusive complexes of the renowned Macquarie Arc porphyry district in Australia. Kincora secured a significant position in the NJNB by acquiring the Nyngan and Nevertire licenses, alongside Fortescue Metals Group (ASX: FMG) and Inflection Resources (CSE: AUCU).

AngloGold has now secured earn-in and joint venture agreements with both Kincora and Inflection, covering approximately 8,000 sq. km. across the NJNB.

Over the past 12 months, the miner has invested over A$6 million in exploring the Inflection agreement area, with additional drilling planned shortly at the Duck Creek and Moonagee prospects, which adjoin Kincora’s Nyngan license.

John Holliday, technical committee chair, and Peter Leaman, VP of exploration, expressed confidence in AngloGold's involvement, highlighting the NJNB's potential to yield new discoveries of Tier-1 gold-rich copper porphyry systems. The copper-gold potential of the NJNB and the northern extension of the Molong belt is gaining recognition for their favorable comparison to other global porphyry exploration hotspots.

AngloGold Ashanti plc (NYSE: AU; JSE: ANG, market capitalization approximately US$10 billion) stands as a global leader in gold mining, boasting a diversified and premium portfolio of operations, projects, and exploration endeavors spanning nine countries across four continents. The company is committed to seizing value-generating opportunities by capitalizing on its existing assets, expertise, and strategic partnerships. With a proven track record in exploration, AngloGold diligently pursues both greenfields and brownfields exploration initiatives, aligning with its commitment to sustainability and long-term growth. Through its greenfield exploration strategy, AngloGold aims to uncover substantial, high-value Mineral Resources, ultimately paving the way for the establishment of new gold mines.