ANGKOR Gold has entered into a definitive joint venture agreement with Mesco Gold on its Oyadao North Concession in Ratanakiri Province, Cambodia. The new agreement expands mineral rights for Mesco, revises an existing net smelter royalty (NSR) Angkor holds on Mesco’s Phum Syarung Gold Project and allows Angkor to focus on its core prospects.
It is the second agreement between the parties and adds to Mesco’s current land holdings in the region including Phum Syarung that is scheduled to begin mining this year.
“MESCO is very close to receiving final approval for their operations at Phum Syarung and this deal enhances their ability to continue to explore and expand their operations well into the future, which bodes well for all parties involved,” says Angkor’s CEO Mike Weeks.
The agreement on the Oyadao North Concession provides Mesco with the rights to explore the entire licence for minerals and, if deemed warranted, bring a portion into commercial production by establishing and operating a mine. Other highlights:
- Mesco agrees to spend US$1.25 million on exploration.
- Angkor will maintain a 15% free-carried interest on the Oyadao North licence without incurring any financial obligations related to the maintenance of the licence and future exploration/mining programs.
- Angkor and Mesco have renegotiated the existing agreement on Phum Syarung such that the new NSR for gold will be at 2.0% while the price of gold is less than US$1000 and will increase 0.25% for every $50 that the gold price exceeds $1000 to a maximum of 7.5%. For all other minerals a 7.5% NSR will be paid.
Meantime, Angkor recently hosted Cambodia’s Minister for Mines and Energy along with members of the country’s National Assembly on a tour of company operations and Phum Syarung. The tour was hosted by Mike Weeks and vice president of corporate social responsibility Delayne Weeks.
Afterwards Mike Weeks said it was one of the most important gatherings seen to-date in support of Cambodia’s young mining sector. “There was a true feeling that the future is here. This was the sentiment that came out during conversations with members of the delegation throughout the trip,” he said.
The delegation stopped at the Koan Nheak property to visit exploration operations and inspect CSR projects. “Based on these visits the Ministry has indicated that moving forward, sector participants in Cambodia will be mandated to have a social development component modelled after our work.”