An amended joint venture agreement has been signed by Southeast Asia Mining (SEA) and its Thai subsidiary for two historical operating silver-lead-zinc mines in Thailand. The agreement provides SEA with the option of earning an 80% stake in the mining lease applications at the Song Toh and Boh Yai mines, with the further option of earning an 80% share in the flotation plant, buildings and equipment during the next four years.
SEA will pay almost US$500,000 and issue 3 million shares to subsidiary Southeast Asia Exploration and Mining (SEAM) to exercise its first option by December 13. A further payment of US$2.5 million is due in July next year for the second option, which will hand the company management of the operation. Production payments of up to US$3 million have also been negotiated in order to maintain the company’s ownership during the first four years of commercial production.
The company’s president Brian Jennings says, “It is very exciting to have entered into this agreement. We are confident that this amended JVA will allow us to move the project forward through the permitting process and ultimately to resume operations at the mines.”
Both the Song Toh and Boh Yai mines operated from 1969 to 2002 and processed about 5.4 million tonnes of ore at the 1200 tonne/day flotation plant. Falling metal prices in 2002 forced the closure of the mines. SEA also owns a 100% interest in 12 other licence areas surrounding the Song Toh and Boh Yai mines within the Loei-Phetchabun gold belt region.