Canadian mineral exploration company Angkor Gold Corp has signed an agreement with Vancouver-based junior mining firm Blue River Resources Ltd to fund exploration of its gold prospects in northeastern Cambodia, the company said in a press release yesterday.
Under the terms of the deal, Blue River will invest up to $3.5 million over a four-year period into exploration of Angkor’s Banlung tenement in Ratanakkiri province in exchange for up to 50 per cent interest in the licence.
Blue River may then exercise an option for an additional 20 per cent interest by completing a bankable feasibility study on some or all of the 150-square-kilometre tenement.
Mike Weeks, CEO of Angkor Gold, said the deal will give his firm the funding it needs to move “full steam ahead” on exploration of the tenement and its flagship Okalla West project, where discovery of a tantalising 2-square kilometre gold-bearing anomaly was announced last October.
“The beauty of this anomaly is its proximity to surface – making it easier to work on, and quicker to move to a development strategy if warranted,” he said.
Angkor Gold first put its boots on the ground in Cambodia in 2009. The listed company currently holds seven exploration licenses in Cambodia covering nearly 1,500 square kilometres.
Griffin Jones, president of Blue River Resources, said his company – which is exploring and developing copper deposits in western Canada and the United States – had been on the lookout for opportunities outside its traditional markets.
“There are great synergies here, and we are keen to get on the ground and build shareholder value for both companies moving forward,” he said.