Canadian miner Angkor Gold Corp announced this week it would consolidate its interests in a number of gold-exploration properties in northwestern Cambodia.
The company, which holds four exploration licences in the Kingdom, intends to buy out Liberty Mining International’s 10 per cent stake in their joint venture in the O’Yadao, Banlung and Banlung North properties in Ratanakkiri province, according to a statement.
Angkor Gold would also acquire Transol Mining and Exploration Pty Ltd, a subsidiary of LMI, which controls 100 per cent of the Andong Meas concession, also in Ratanakkiri, the statement said.
Angkor will pay CA$200,000 (US$202,000) for the acquisitions, as well as issue 4.25 million common shares in the capital of Angkor, according to the company’s release.
The deal is subject to “conditions typical for a transaction of this nature”.
“I am extremely pleased with the significant value added to our shareholders with this acquisition,” Angkor CEO and president Mike Weeks said in the statement. “This further confirms our position that Cambodia is a country play.”
Weeks could not be reached yesterday for comment, but LMI managing director Richard Stanger called the deal a “very significant move”.
“It gives Angkor control of the four licences, which were originally a joint venture with Liberty,” Stanger, who is also president of the Cambodian Association of Mining and Exploration Companies, said.
“It also incorporates the Andong Meas project, which is highly prospective for gold, based on the previous exploration that Liberty Mining has done on it for the past few years.”
Weeks said assay results from Andong Meas “could give us drill-ready targets soon”.
Liberty planned to “focus on its other projects in other provinces”, Stanger said.
To contact the reporter on this story: Tom Brennan at [email protected]