VANCOUVER (miningweekly.com) – Cambodia-focused explorer Angkor Gold has agreed to an all-scrip buyback of a 2.5% net smelter return (NSR) royalty sold to investors in 2014, at 130% of its original $875 000 price.
The TSX-V-listed company had in May 2014 sold 2.5% of the company’s 7.5% NSR to come from Mesco Gold (Cambodia) on Mesco’s Phum Syarung mine, located in north-eastern Cambodia.
Under the original sale agreement, Angkor had the option to buy back the NSR after Cambodia had in September issued the first industrial mining licence under its new regulatory framework, signalling the final step for India-based Mesco Gold to bring its Phum Syarung gold mine into production.
Angkor will issue 3.81-million shares at a deemed price of C$0.40 each in connection with the transaction.
Upon closing, Angkor will once more own the full NSR on all future output from Mesco’s Phum Syarung mine, with the NSR ranging from 2% to 7.5%, based on a sliding-scale gold price.
“Angkor is very fortunate to have a very strong and supportive shareholder base. The original transaction provided funding for Angkor’s 2014 work programmes, and I believe that the completion of the all-stock buyback further shows their continued support for our growing company,” stated Angkor CEO and chairperson Mike Weeks.
Angkor advised that the next phase of its exploration programme would be fully funded this quarter by its project partners. “We anticipate a very busy schedule working with Japan Oil, Gas and Metals National Corporation, or Jogmec, and Blue River Resources over the coming months as we expand our understanding of both the Halo and Okalla West prospects,” noted operations VP JP Dau.
Angkor is also actively pursuing additional partnerships for its two wholly owned licences – Andong Meas and Koan Nheak.