Angkor Gold Corp has completed an all-shares buy back of Net Smelter Return (NSR) interests in Mesco Gold’s Phum Syarung mine in northeast Cambodia. The NSR interests were sold to investors and related parties in 2014.

The NSR interest holders received an amount equal to 130% of their original purchase price of US$875,000 in exchange for the NSR interests, which amount was paid by the company in common shares of Angkor at a deemed price of C$0.40 per share.

As originally reported in May 2014, the company sold to shareholders and related parties of Angkor an aggregate of 2.5% of its sliding scale NSR interest to come from Mesco Gold (Cambodia) Ltd on Mesco’s Phum Syarung mine.

The sale of the NSR interests raised US$875,000 at that time, and included an option for Angkor to buy back the NSR interests once Mesco received licensing and moved closer to production.

The buyback options of the original sales agreements were originally to be priced after one year at between 130% and 150% of the original sale price, however the company subsequently negotiated a uniform rate for all parties’ buy back at 130%, and that the buyback be fully in stock in lieu of cash. A no-cash, all-stock buyback preserves the company’s working capital.

With the completion of the buyback, Angkor owns the original full NSR interest on all future production from Phum Syarung, which is based on a sliding scale from 2.0% to 7.5%, based on gold price.

Angkor Gold is Cambodia’s premier mineral explorer with a large land package and a first-mover advantage building strong relationships with all levels of government and stakeholders. Its six exploration licences in the Kingdom of Cambodia cover 1352sqkm, which the company has been actively exploring over the past six years.

www.angkorgold.ca

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