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Angkor Gold (TSXV:ANK) announced that it has entered into a Joint Exploration Agreement with Japan Oil, Gas and Metals National Corporation to explore ANGKOR’s 100% owned Oyadao South license.
Angkor Gold (TSXV:ANK) announced that it has entered into a Joint Exploration Agreement with Japan Oil, Gas and Metals National Corporation to explore ANGKOR’s 100% owned Oyadao South license.
As quoted in the press release:
The agreement gives JOGMEC the option right to acquire 51% of the Oyadao South license for a total investment of US$3 million in exploration expenditures over a 3 year period. The JEA will be executed after necessary procedure according to the Cambodian related regulation.
JOGMEC’s mandate is to invest in early-stage exploration projects around the world to secure viable future natural resources for Japan’s growing economy.
Key Highlights:
- JOGMEC has been granted the option right to earn a 51% in the Oyadao South Project located in the Kingdom of Cambodia and will fund US$3.0 million during the Farm-In Period of 3 years or less.
- During the Farm-In Period, ANGKOR shall conduct all exploration activities on behalf of the Parties and JOGMEC shall fund 100% of the Programs.
- During the Pro Rata Funding Period, each Party shall fund the cost thereof in proportion to its existing actual and deemed entitlement to a Participating Interest in the Joint Venture
- If the Participating Interest in the Joint Venture of any Party is diluted to less than 15%, then such Non-Participant will no longer be a party to the Joint Venture, and will be automatically converted to a 1.5% NSR. At such time, the other Party may at any time purchase 0.5% of the NSR out of 1.5% at a one-time cash payment of US$1,500,000.
Angkor Gold President and CEO, Mike Weeks, stated:
We have worked tirelessly to secure the most appropriate partner to bring this copper/ gold/moly porphyry prospect on Oyadao forward. JOGMEC’s reputation is second to none. We are keen to work with them and to further identify and explore additional targets. JOGMEC illustrates great confidence by assigning ANGKOR as operator; we will combine the best expertise from both teams to fast-track this project.
Today’s announcement ensures that ANGKOR’s project generation model continues to expand as JOGMEC is keen to look at other potential opportunities alongside ANGKOR that may be present in Cambodia. MESCO has shown that Cambodia has the makings of a viable, world-class mining sector, and there are many serious players looking in from the sidelines.
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