Angkor Gold announces that it has received the approval of the Cambodian Ministry of Mines and Energy to proceed with its joint project with Renaissance Minerals (Cambodia) Ltd on Angkor’s wholly-owned Koan Nheak property. The approval of the Cambodian Ministry of Mines and Energy clears the way for Angkor and Renaissance to proceed with their joint exploration plans of Koan Nheak under their Definitive Earn-In Agreement (the Agreement) announced July 12, 2017.
Renaissance Minerals (Cambodia) Ltd is a subsidiary of the Australian company Emerald Resources NL.
With Cambodian government approval, Angkor and Renaissance will immediately begin planning the next stage of intensive exploration at Koan Nheak. The terms of the Agreement between Angkor and Renaissance include a total investment by Renaissance of $2 million USD in exploration and development expenditures plus a $200,000 USD cash payment to Angkor by Renaissance over a 2-year period for them to acquire a 51% participating interest in the Koan Nheak license.
Upon completion of the initial earn-in option, Renaissance has the right to acquire an additional 29% participating interest in the license with the commissioning, and completion, of a Definitive Feasibility Study. After that, Angkor will maintain a 20% participating interest in the property, or at Angkor’s discretion, can convert to a 3.5% Net Smelter Return on all metals. Renaissance will be the operator on the project throughout.
Angkor’s Koan Nheak Licence lies immediately south of the town of the same name in the northeast of Mondulkiri Province. It covers three prospects of interest: Peacock, East Ring and Straddle. Zones of abundant sulphide-rich quartz vein float were observed on Peacock, which previously reported a field grab sample assay value of greater than 33.2 g/t Au. Grab samples are selective samples and are not necessarily representative of the mineralization hosted on the property. No drilling has been previously undertaken at Koan Nheak.
Angkor Gold Corp. is the first North American publicly-traded mineral exploration company in Cambodia.