Cambodian firm Angkor Gold Corp (ANK) on Thursday finalised a partnership agreement with Hong Kong firm Tohui Beishan Property Group Holding Limited (TG) worth more than $10.4 million.
According to a company statement issued on the Toronto Stock Exchange, ANK granted the Hong Kong firm 7.9 million shares in the company at $0.285 per share, valued at $2.25 million.
In addition to the share sale, ANK has granted TG the option of purchasing a further 7.9 million shares at $0.5 per share (valued at $3.95 million), and the option to purchase 15 per cent of the gold exploration company’s Cambodian operations for a price tag of $4.28 million.
The June 26 definitive agreement closure announcement comes after the two companies inked the deal in April this year.
“TG also brings a consortium of associates, including Beijing Explo-Tech Engineering Co (BETEC), and the China Chemical Geology and Mine Bureau Shandong Geological Prospecting Institute (SGI),” ANK’s April 14 filing states.
“Angkor shall contract BETEC and SGI to complete specific exploration activities including, but not limited to, specific geophysical activities . . . 80 per cent of the proceeds of the transaction are to fund direct exploration activities in Cambodia.”
ANK’s locally wholly owned subsidiary, Angkor Gold Cambodia, has for the past five year operated gold exploration operations in Ratanakkiri province under seven separate exploration licenses issued by the Cambodian government.
The firm’s exploration area covers more than 1,440 square kilometres of the far northeastern province.
John-Paul Dau, country manager for ANK in Cambodia, said the partnership could potentially expedite the firm’s exploration period.
“The Tohui group have some substantial resources both financially and technically speaking, especially when it comes to geophysics,” Dau told the Post.
“Obviously the more people you have on board during exploration, the closer you can get to actually mining.”