Southeast Asia Mining Corp (SEA) has signed a Memorandum of Understanding (MoU) with Metal Tiger plc, a London Stock Exchange listed natural resources company primarily focused on the mining sector in South East Asia. The MoU outlines the terms of an option whereby Metal Tiger can earn a 75% interest in the exploration applications in Nakon Sawan, Lopburi and Chanthaburi provinces of Thailand.
The MoU provides for an exclusive 90-day period to finalize a joint venture agreement (JVA) with SEA. The JVA will provide Metal Tiger with the option to earn a 75% interest in the exploration applications by paying SEA US$150,000 and spending US$150,000 on the properties over a two year period. Metal Tiger paid SEA US$10,000 upon signing the MoU.
The MoU formalizes an arrangement with Metal Tiger to develop a partnership for future operations relating to the exploration applications in Nakon Sawan, Lopburi and Chanthaburi provinces. SEA looks forward to working with Metal Tiger to develop their interests in the region.
The MoU does not include the joint venture agreement whereby SEA 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 or SEA’s 100% interest in the exploration permits and applications surrounding the Song Toh and Boh Yai mines.
Southeast Asia Mining Corp is a junior exploration and mining company focused in Thailand. The company completed a NI 43-101 compliant preliminary economic assessment for the 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 licenses (1308 hectares) and seven special prospecting licence applications (4400 hectares) surrounding the Song Toh and Boh Yai mines.
SEA also recently announced that its joint venture partner had agreed to an extension of the second option payment from July 15, 2014 to November 15, 2014 as required pursuant to its joint venture agreement. SEA may exercise the second option by making a US$2.5 million payment to its joint venture partner prior to November 15, 2014.
Upon making the payment, SEA will have earned an 80% interest in the mining lease applications and will assume operatorship of the project. In addition, monthly instalment payments required pursuant to its JVA to earn an 80% interest in the flotation plant, buildings and equipment have been deferred to November 15, 2014. Total instalment payments deferred to November 15, 2014 are US$81,522. www.seasiamining.com or www.metaltigerplc.com