Angkor Gold Corp has received notification of the effective date of the Joint Exploration Agreement (JEA) from its partner, Japan Oil, Gas and Metals National Corporation (JOGMEC), to explore Angkor’s Oyadao South licence in Cambodia.
A total investment of US$3 million in exploration expenditures by JOGMEC over a 3 year period will begin immediately with Angkor as operator under the previously agreed to JEA. The JEA also gives JOGMEC the option right to acquire 51% of the Oyadao South licence.
“The Angkor team had been working towards renewing the Oyadao South licence, and with that successfully completed, we are focused on initiating our first work program with JOGMEC,” said Angkor CEO and chairman Mike Weeks.
“The Halo prospect represents a cornerstone asset for the company and we worked very hard to find a world-class partner to help build our understanding of the potential of this asset. JOGMEC’s extensive experience in working with large porphyry systems globally will be extremely valuable to us moving forward.”
“Angkor and JOGMEC have established a management committee and planning is under way to initiate a first-round Induced Polarisation (IP) program followed by plans for drilling once targets are identified,” said Angkor’s VP of Operations JP Dau. “Angkor has initiated a Request For Proposals (RFP) process for the IP work, and the management committee will review the responses.”
Previous exploration by Angkor on the Halo prospect has identified the potential of copper-molybdenum-gold mineralisation as expressed by hydrothermal alteration that covers an area of approximately 7.25sqkm.
Subsequent to the farm-in 51% milestone, each party shall fund the ongoing cost thereof in proportion to its existing actual and deemed entitlement to a participating interest in the project.
If the participating interest of either Angkor or JOGMEC is diluted to less than 15%, then that company will no longer be a party to the project, and its interest will be automatically converted to a 1.5% NSR. At such time, the other party may at any time afterwards purchase 0.5% of the 1.5% of the NSR for a one-time cash payment of US$1.5 million.