Southeast Asia Mining Corp’s (SEA) joint venture partner has agreed to an extension of the second option payment from July 11 to September 30, 2013 as required under its Joint Venture Agreement announced October 17, 2012. The JV has applied for mining leases covering the Song Toh and Boh Yai silver, lead and zinc mines in Thailand.
SEA may exercise the second option by making a US$2.5 million payment to its JV partner on September 30. Upon making the payment, SEA will have earned an 80% interest in the mining lease applications and will assume operatorship of the project. The mining lease applications will be effectively transferred to a newly incorporated company, Southeast Asia Mining Company Limited (SEAMC) which is controlled 80% by SEA and 20% by its joint venture partner.
Due to unfavourable market conditions the company is not actively pursuing the previously announced brokered private placement. The company is currently focused on potential strategic relationships with multiple parties and will continue to monitor the availability of traditional equity financing.
Southeast Asia Mining Corp is a junior exploration and mining company focused in Thailand. It has a JV agreement whereby it has an option to earn an 80% interest in the mining lease applications of the two historical operating silver-lead-zinc mines (Song Toh and Boh Yai), flotation plant and equipment.
The mines were operated by Cominco in 1948, explored and operated by the German mining company Metalgesellschaft to 1990, and subsequently by a Thai private company (Kemco) until 2002 when they were closed due to depressed metal prices. Historically the mines processed about 5.4 million tonnes of ore producing 520,000 tonnes of lead and zinc concentrates at the 1000 tonnes/day flotation plant. The plant was refurbished in 2008 by SEA and its joint venture partner when about 60,000 tonnes of ore were processed.
The company completed a NI 43-101 compliant Preliminary Economic Assessment for the historical operating Song Toh and Boh Yai deposits which indicated a pre-tax NPV of $88.8 million and an IRR of 148% for 100% of the historical mines.
The company also has a 100% interest in three special prospecting licences and seven special prospecting licence applications surrounding the Song Toh and Boh Yai mines and two special prospecting licence applications for copper-gold exploration in the Province of Lopburi and Nakon Sawan within the area of the Loei-Phetchabun Gold Belt.