Logo of Phnom Penh Post newspaper Phnom Penh Post - Mining firm bags new licences for two plots

Mining firm bags new licences for two plots

Mining firm bags new licences for two plots

Mekong Minerals has successfully renewed the mining exploration licenses for two of its Cambodian tenements and expects permits on another two tenements to be granted soon, the Australian mining firm’s managing director said yesterday.

The Cambodian government has re-issued exploration licenses for Mekong’s Snoul and Phnum Khtung tenements, part of its Memot and Kratie North projects respectively. The renewed licenses are valid for up to six years.

“These are new generation licenses and we are very pleased that the government is pro-active in getting titles and exploration moving again in Cambodia,” said Anthony McClure, managing director of Mekong Minerals.

Licenses for the Preak Khlong and O’Khtung tenements – both part of the company’s Kratie South project – are expected to be granted soon.

Mekong Minerals stepped up its investment in Cambodia last June by completing its full acquisition of ASX-listed Southern Gold Ltd’s local subsidiary in exchange for a free-carried interest and royalty. Together, the two firms have invested approximately $12 million in tenements spanning 1,500 square kilometres.

Earlier this week Southern Gold announced that all conditions for the sale of its Cambodian subsidiary, Southern Gold (Asia) Pty Ltd to Mekong Minerals had been fulfilled.

“The agreement was signed months ago and now has been effected after all approvals have been met,” McClure said.

Simon Mitchell, managing director of Southern Gold, said the company’s divestment would allow it to focus its resources on developing its Cannon gold mine in Western Australia.

“Our Cambodian tenements were non-core assets receiving little attention or value from our investors. In Mekong’s hands they should move forward and represent interesting exploration plays,” he said in an announcement to the ASX.

Under the sale agreement, Southern Gold holds a 15-per cent free-carried interest in an unincorporated joint venture with Mekong until completion of a definitive feasibility study.

It is also set to receive a 2 per cent gross sales royalty until a cumulative $11 million is earned, at which point the royalty reduces to 1 per cent.

MOST VIEWED

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Cambodia at ‘most critical moment’, Hun Sen warns

    Prime Minister Hun Sen said the first community transmission of Covid-19 in Cambodia has led the country to the “most critical moment” that warranted urgent, large-scale operations to contain the pandemic. Hun Sen, who confirmed the first local transmission on November 28, said the source of

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there