Southeast Asia Mining Corp has entered into a joint venture agreement (JVA) with Metal Tiger plc regarding the Nakon Sawan, Lopburi and Chanthaburi properties. Metal Tiger must pay SEA US$150,000 and spend US$150,000 on the properties in order to earn a 75% interest.
The agreement incorporates the terms outlined in a Memorandum of Understanding announced on August 1, 2014. Metal Tiger paid Southeast Asia US$10,000 upon signing the MoU, US$15,000 upon signing the JVA, and is required to pay US$50,000 on or before January 29, 2015, and US$75,000 on or before July 29, 2016. The property expenditures of US$150,000 must be incurred prior to July 29, 2016.
The properties included in the JVA do not include the properties incorporated in Southeast Asia’s joint venture agreement for the Song Toh and Boh Yai mines or the exploration properties surrounding the historical Song Toh and Boh Yai mines in Kanchanaburi province.
The company’s three special prospecting licences (SPLs) surrounding the Song and Boh Yai mines expired on October 20, 2014. On October 21, the company made a Special Prospecting Licence Application (SPLA) covering the majority of the area covered by the expired SPLs. The company will now proceed to seek government approval to advance the SPLA to SPLs and continue the exploration program on the area surrounding the historical Song Toh and Boh Yai mines.
Southeast Asia and its JV partner have agreed to an extension of the second option payment from November 15, 2014 to December 15, as required under its JVA first announced on October 17, 2012, covering the Song Toh and Boh Yai properties. Southeast Asia may exercise the second option by making a US$2.5 million payment to its JV partner prior to December 15. Upon making the payment, it will have earned an 80% interest in the mining lease applications and will assume operatorship of the project.