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

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Hun Sen: Manet to be candidate for prime minister

    Prime Minister Hun Sen has reaffirmed that his oldest son Hun Manet will be his successor as Prime Minister if he is elected. Speaking during the inauguration of a new sewage treatment facility in Preah Sihanouk province on December 2, Hun Sen said Manet will be

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied