Mr. Stephen Burega reports
ANGKOR SIGNS USD $4.6 MILLION EARN-IN AGREEMENT ON OYADAO LICENSE
Angkor Resources Corp. has signed an earn-in agreement on its Oyadao licence with Canadian development company Hommy Oyadao Inc. to earn up to a 70-per-cent interest in Angkor's Oyadao North licence in exchange for payments totalling $4.6-million (U.S.).
Hommy 5 Resources Inc. will return any earned interest in Angkor's Banlung licence in return for Hommy Oyadao Inc. receiving an initial 10-per-cent earn-in interest in Oyadao (see press release dated Sept. 19, 2018).
With the end of the previous agreement with Hommy 5 Resources Inc., the Banlung licence returns to being 100 per cent owned by Angkor.
Hommy may acquire an additional 20-per-cent interest in Oyadao by making an upfront payment to Angkor of $100,000 (U.S.) for past and future work associated with the property, and by paying to Angkor as operator on or before May 30, 2020, an additional $500,000 (U.S.) to be spent on exploration of Oyadao North.
Following that, Hommy will spend a minimum of $100,000 (U.S.) a quarter on Oyadao.
Once Hommy has either spent an additional $4-million (U.S.) on Oyadao in exploration, development and related statutory fees relating to the licence, or has produced more than 300 ounces of gold per month for six consecutive months or an aggregate of 2,000 ounces of gold from the property, whichever is the sooner, then Hommy will be granted a further 40-per-cent participating interest, bringing its total interest in Oyadao North to 70 per cent.
Should Hommy fail to meet any of the above milestones, the property will revert to Angkor with no interest earned by Hommy.
"We are very pleased to be working again with Hommy," said Mike Weeks, executive chairman of Angkor. "They were excellent development partners on Banlung. The proximity of Oyadao to the development at Mesco's Phum Syarung mine site (see press release dated June 25, 2018) is of great interest to us both and we are excited to pursue this initiative together."
Dr. Adrian G. Mann, director of, and technical adviser to, Hommy Oyadao Inc., is optimistic about the company's immediate exploration plans for Oyadao: "Mesco's vertical shaft is about 400 metres from our first drill target which is based on a strong EM conductor that coincides with the line of strike of their main vein. It's a modest but aggressive program on which we can build."
The Oyadao licence is a 222-square-kilometre area near the Vietnam border, running north and east of Mesco's Phum Syarung mine site, the mineral rights of which were sold separately by Angkor to Mesco in 2013 and licensed in 2016 for $1.8-million (U.S.) in cash, with Angkor retaining a sliding scale net smelter return interest ranging from 2.0 per cent to 7.5 per cent on any gold production, as well as 7.5 per cent of the value all other metals produced.
About Angkor Resources Corp.
Angkor Resources is a public company, listed on the TSX Venture Exchange, and is a leading mineral explorer in Cambodia with a large land package. In 2019 it added block VIII, a 7,300-square-kilometre oil and gas exploration licence in Cambodia, to its exploration portfolio.
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