Angkor Gold Corp. Agrees to Acquire Andong Meas Concession and to Increase Licence Interest From 90pct to 100pct in Cambodia
ANGKOR GOLD CORP. CA:ANK +2.56 percent (“ANGKOR”) is pleased to announce that it has agreed to increase its interest from 90 percent to 100 percent in its existing licenses and acquire 100 percent ownership of a new concession, Andong Meas.
This transaction (the “Acquisition”) will consist of Angkor first acquiring Transol Mining and Exploration Pty Ltd (“Transol”), which owns 100 percent of the 209 square kilometre Andong Meas concession in Cambodia and a 10 percent interest in Angkor’s Oyadao South gold exploration property. Angkor will then acquire the remaining 10 percent interests in Angkor’s Oyadao, Banlung and Banlung North gold exploration properties, which are currently owned by Liberty Mining International Pty Ltd (“LMI”). When these transactions are complete, Angkor will own a 100 percent interest in the Oyadao, Oyadao South, Banlung and Banlung North gold exploration properties and will have acquired 100 percent of the Andong Meas concession.
In consideration for the Acquisition, Angkor has agreed to pay the vendors CA$200,000 cash and to issue to the vendors an aggregate of 4.25 million common shares in the capital of Angkor. These shares will be voluntarily escrowed for 6 months.
Mike Weeks, President and CEO of Angkor Gold Corp., stated, “I am extremely pleased with the significant value added to our shareholders with this acquisition. This further confirms our position that Cambodia is a country play. The transaction will add the final 10 percent to all our licenses and complete our obligations under the Joint Venture with LMI. As well, Andong Meas is a great addition to our exploration efforts, and substantially increases our opportunity to discover an economic deposit.”
The Andong Meas property is contiguous to the west and northwest of Angkor’s Oyadao license and has had considerable exploration work to date. Including an aeromagnetic survey and geological satellite imagery interpretation highlighting multiple exploration areas for follow-up, not least of which are the hundreds of artisanal mine workings throughout the property. Angkor is primarily interested in the Andong Meas property because it fits within Angkor’s business plan to acquire projects that show geological promise within the existing areas of operation.
To view a map of the Andong Meas Oyado Project, please visit: http://orders.newsfilecorp.com/files/1494/2031_angkornrx2x1.jpg
Dr Adrian Mann, VP of Exploration, said: “Given the proximity of this property to our Oyadao Border prospects, the clear northwesterly trend shown in our soil geochemical surveys at Border prospect and the extensive veining in the artisanal pits and shafts, Andong Meas is a logical acquisition.”
On his current trip to the property, Weeks observed what is estimated to be a 100-metre adit in the side of a hill in the main artisanal mining area and surface trenches following the vein system for several kilometres. On a second artisanal site, heavy equipment had been used to start a small open pit. Both sites had very simple processing equipment in place for gold recovery. Some of the artisanal sites already sampled have yielded grab samples grading as high as 76 g/t Au. The foreign miners were removed by security and Angkor plans to deploy men and establish a camp at the site immediately. Weeks said, “The local people guided us into the two sites and are very happy we are going to start work there. Assays of the veins in the open pit and the mine shaft could give us drill-ready targets soon.”
Pictures of the artisanal workings can be viewed at www.angkorgold.ca/gallery.html
In a stream sediment survey done by LMI in 2007, three catchments gave significant gold in the -80# fraction and pan concentrates. The gold assay values obtained are reinforced by neighbouring gold anomalies in contiguous catchments.
Angkor intends to enter into a definitive agreement with respect to the Acquisition, which will set out the terms of the Acquisition and which will contain conditions typical for a transaction of this nature. Completion of the Acquisition will be subject to a number of conditions precedent including, but not limited to:
1) approval of the TSX Venture Exchange and all other regulatory approvals as may be required;
completion of satisfactory due diligence by Angkor, including the completion of an independent
3) the approval of the Acquisition by the directors of Angkor, LMI and Transol, as applicable; and
4) the approval of the shareholders of Angkor, LMI and Transol, if required.
LMI and Transol are Cambodian corporations indirectly owned by Michael Weeks, the President and CEO of Angkor.
The QP for this release, the technical portions of which he wrote and approved, is Adrian G. Mann, P.Geol., VP Exploration for ANGKOR. He is a graduate of London University and of the University of the Witwatersrand, with over 40 years world-wide experience in mineral exploration and mining geology. Dr Mann lives in Calgary, Alberta.
ANGKOR GOLD CORPORATION is a public company listed on the TSX-Venture exchange. The company has 4 exploration licenses in the Kingdom of Cambodia covering a total of 1140 km2 and 3 Memoranda of Understanding with the Ministry of Mines, Industry and Energy covering a further 1499 km2. The company has been actively exploring these concessions over the past 3 years, and has now covered all 7 tenements with stream sediment geochemical sampling, has flown low level aeromagnetic surveys over much of the ground, drilled some 13,687 metres of NQ core in 111 holes, and has collected in excess of 16,000 ‘C’ zone soil samples in 8 centres of interest, over a combined area of 19km2, in addition to numerous trenches and detailed geological field mapping. Exploration on all tenements is ongoing.
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Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterised by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the timing and completion of the Corporation’s financings and related information. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are founded on the basis of expectations and assumptions made by the Corporation. Such forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, Cambodia, the United States and globally; industry conditions, including fluctuations in the prices of gold and other base metals; governmental regulation of the mining industry in both Canada and Cambodia, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain mining equipment and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; liabilities inherent in mining operations; competition for, among other things, capital, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programmes relating to the mining industry; failure to realise the anticipated benefits of acquisitions and dispositions; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
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SOURCE: Angkor Gold Corp.
CONTACT: FOR FURTHER INFORMATION PLEASE CONTACT:
ANGKOR GOLD CORP.
Mike Weeks, President