VANCOUVER, British Columbia, Nov. 14, 2013 (GLOBE NEWSWIRE) -- ANGKOR GOLD CORP. (TSX-V: ANK ) ("ANGKOR") is pleased to announce that it has closed a Purchase Agreement with Mesco Gold Ltd. ("Mesco") which extends their existing land package from 6km 2 to 12km 2 to include Angkor's recently identified Blue Lizard prospect. Mesco has advised that it expects to begin gold production from these prospects by early 2015.
Mesco is an associated company of Mesco Steel Ltd., which is a leading Indian, vertically-integrated iron and steel producer that has successfully diversified its operations into other raw materials and commodities including mining.
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HIGHLIGHTS:
- Angkor will receive USD$700,000 in staged payments through 2013-2015. This payment is in addition to the USD$1,200,000 from its sale of the Phum Syarung Prospect in January 2013.
- Mesco's rights covering 6 km2 of Angkor's 247 km2, Oyadao South Concession will extend to cover 12km2 and include Angkor's recently identified Blue Lizard prospect.
- From a geological perspective, the indications from early exploration at Blue Lizard are suggestive of continuity with Phum Syarung (see Angkor's news release of November 5 th , 2013). This zone may also be related to the larger epithermal system identified at Otray (see Angkor's news release of May 29 th , 2013).
- Angkor and Mesco have also agreed to introduce a sliding scale Net Smelter Royalty on production from the expanded land package based on the price of gold as follows: 7.5% between $1300-1700, increasing by 0.5% per $50 change in the price of gold above $1700, decreasing by 0.5% per $50 change in the price of gold below $1300.
Mike Weeks, Angkor's CEO, commented, "Mesco is progressing rapidly towards achieving their mining licence which will enable them to begin construction of the mine at Phum Syarung. It made sense to do a deal on the Blue Lizard prospect at this stage so that it could be included in their licence application.
Introducing a sliding scale royalty structure also made sense in view of the increasing uncertainty and volatility we've witnessed in the spot gold market in 2013. This will be the first officially licensed gold production in Cambodia – that's a very important milestone to help develop the Cambodian natural resource sector. We're very pleased to play our part in that future success.
And finally, our third strategic transaction in 2013 is another important achievement for Angkor. Once again, we are pleased to be able to improve our working capital position."
Mesco Gold, in partnership with Angkor, will further the exploration and if warranted by results put it into gold production for which Angkor will receive a sliding scale Net Smelter Royalty ("NSR") based on the price of gold from all production. Mesco Gold anticipates a rolling start to production by early 2015 and has the ambition of becoming a mid-size gold producer in Cambodia. At this time there is no current resource estimate and a feasibility study has not been completed.
Angkor is Cambodia's premier gold explorer with a significantly large land package containing multiple prospects. Previous drill results at the Phum Syarung project include 16.67g/t over 4.05m. Geologically, Phum Syarung appears to be a shear zone with polymetallic mesothermal quartz veins showing multiple intercepts with a strike of 275m, open at both ends and at depth.
Under the terms of the Purchase Agreement:
- Angkor will grant Mesco Gold the full exclusive right to mine, process and sell all minerals and metals from 12km2 in exchange for additional payments totalling USD$700,000 through 2013-2014.
- Mesco Gold will be responsible for 100% of all future exploration and exploitation costs at Phum Syarung. Mesco Gold shall provide all technical manpower, equipment, machinery, and logistical solutions to carry out the mining, processing and selling/marketing of products obtained from the mines and processing plant. Angkor will assist with logistical support and will continue to manage local community development and government relations.
Kurtis Dunstone, Geologist and Angkor's Exploration Manager, commented, "We were not at all surprised that Mesco's geologists shared our excitement at the stacked quartz veins and grab samples. For all intents and purposes, Blue Lizard appears to be an extension of Phum Syarung, which, in turn, adds credence to our belief that Phum Syarung, Blue Lizard and Dokyong are all part of an extended 11km mineralised system with Otray as the crown jewel in the middle."
The QP for the technical content of this release, which he wrote and approved, is Adrian G. Mann, P.Geol., VP Exploration for ANGKOR. He is a graduate of London University and the University of the Witwatersrand, with over 45 years world-wide experience in mineral exploration and mining geology. Dr. Mann lives in Calgary, Alberta.
ANGKOR 's 7 exploration licences in the Kingdom of Cambodia cover 1448 km 2 , which the company has been actively exploring over the past 4 years. The company has now covered all tenements with stream sediment geochemical sampling; has flown low level aeromagnetic surveys over most of the ground; drilled 18,737 metres of NQ core in 148 holes; and has collected in excess of 20,000 augured 'C' zone soil samples and over 32,000 TMS in 12 centres of interest, over a combined area of 70km 2 , in addition to numerous trenches and detailed geological field mapping. Exploration on all tenements is ongoing.
ANGKOR GOLD CORP ., a public company listed on the TSX-Venture Exchange, is Cambodia's premier gold explorer with a significantly large land package and a first-mover advantage with excellent relationships at all levels of Government (local to national).
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM
FOR FURTHER INFORMATION PLEASE CONTACT: ANGKOR GOLD CORP. Mike Weeks, President Telephone: (780) 568-3801 Email:
