Angkor Gold Corp. CEO Mike Weeks is pleased to announce that Angkor has received the approval of the Cambodian Ministry of Mines and Energy to proceed with its joint project with Renaissance Minerals (Cambodia) Ltd ("Renaissance") on Angkor's wholly-owned Koan Nheak property.
The approval of the Cambodian Ministry of Mines and Energy ("MME") 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 Emerald Resources NL (ASX: EMR) ("Emerald"), an established Australian mining company operating in Cambodia through Renaissance. Renaissance is currently working through the final permitting process on their Okvau Gold deposit located approximately 60 kilometres from the southern edge of Angkor's Koan Nheak license.
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 ("NSR") 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.
Dennis Ouellette, B.Sc, P.Geol., a member of The Association of Professional Engineers and Geoscientists of Alberta (APEGA #104257) and a Qualified Person as defined by National Instrument 43-101 ("NI 43-101"), is the Company's Exploration Manager and has reviewed and approved the technical disclosure in this document.