RENAISSANCE Minerals has secured a development partner for its Cambodian projects through a joint venture with Emerald Resources. The JV will focus on the flagship Okvau Gold Project.
The parties have signed a legally binding Memorandum of Agreement (MoA) whereby Emerald may earn up to a 51% interest in Renaissance’s Cambodian projects by sole funding a definitive feasibility study (DFS) for the development of Okvau to a bankable level, an Environmental & Social Impact Assessment (ESIA) and a 2-year exploration program of US$3 million (A$4.3 million). Renaissance had previously estimated that the cost of the DFS and ESIA alone would be in the vicinity of US$4-5 million.
Emerald and Renaissance have agreed on the standard of DFS Emerald is required to complete based on a comprehensive criteria and to a level of accuracy that will be acceptable to potential project financiers. Emerald will be sole manager of the DFS while Renaissance and Emerald will jointly manage the exploration.
Emerald has subscribed for 57.4 million shares in Renaissance as part of a placement of 114.8 million shares to raise A$3.4 million. The remaining shares have been placed to institutional and sophisticated investors. Upon completion of the placement, Emerald will hold a 10% interest in Renaissance and can appoint a non-executive director to the Board.
Renaissance’s managing director Justin Tremain said: “The Emerald team is one of the best credentialed gold development teams in Australia with a proven history of developing projects successfully, quickly and cost effectively. The fact that this team has been attracted to the Okvau project is a testament to its potential.
“Renaissance is committed to taking Okvau forward and in light of current equity market conditions believe this joint provides the most attractive funding option for shareholders. Renaissance shareholders retain significant ownership of the Okvau project with an exceptional development partner, and will benefit from any improvement in development economics and from future exploration success without the associated immediate funding obligation.
“The funding of a DFS and ESIA alone is a significant cost burden that this transaction removes from Renaissance shareholders. The joint venture also provides for the funding of ongoing exploration.”
ASX-listed Emerald’s managing director Morgan Hart has overseen the successful development of gold projects for Equigold and, most recently, as operations director of Regis Resources. He has assembled a team of highly competent mining engineers and geologists for Okvau’s development.