Leveraging Cambodia’s natural wealth to build a profitable and sustainable exploration company
Angkor Gold Corp. (TSXV: ANK) is a leading Canadian gold and copper mineral explorer. Angkor is the first North American publicly-traded mineral exploration company in Cambodia, with more than 30 prospects across five licenses (renewed in 2017) covering a massive 983-square kilometre land package. Their business strategy focuses on project generation and selecting strong partners to advance each of their multiple prospects to a sustainable recurring revenue stream.
Angkor is operating in a mining friendly region with a growth orientated government having an annual GDP growth rate of 7%, with good infrastructure investment (hydro & road), and a low cost operating environment. The Company is using a modern mining governance model based on Western Australian mining law.
Angkor holds 5 exploration licenses in Cambodia:
- Andong Meas (187 km2)
- Banlung (150 km2)
- Koan Nheak (189 km2)
- Oyadao (222 km2)
- Oyadao South Halo (247 km2) – Includes a copper-molybdenum-gold porphyry system with disseminated sulphides.
Angkor’s business strategy in Cambodia is based on project generation and building a royalty portfolio based on sales and agreements with successful international partners. In the past three years, Angkor has completed ten successful transactions valued at over USD $19 million. These include several multi-year earn-in agreements with major international companies, such as Japan Oil Gas and Metals National Corporation (JOGMEC), a sliding scale 2.0% to 7.5% net smelter return with Mesco Gold (Mesco), and a US$2.2m Earn-In Agreement with Australian company Emerald Resources NL.
Mike Weeks, Executive Chairman of Angkor Gold stated: “I am committed to opening every door I can to identify the most advantageous relationships on our flagship prospects while we continue to explore the overlooked mineral riches of Cambodia”.
A founding member of the Cambodian Association for Mining and Exploration Companies (CAMEC), Angkor Gold is the first publicly-traded North American company with mineral assets in Cambodia. Angkor’s management has built strong relationships with all levels of government, from village leaders to the Ministry of Mines and Energy.
In June 2016, the World Bank’s International Development Association made a commitment to provide $130 million in support of four projects, including road improvement and healthcare. The World Bank’s International Finance Corporation is also increasing its support for the further development of Cambodia’s finance, trade and infrastructure sectors. This means Cambodia should become more attractive for additional mining and exploration companies in the future.
In 2013, Angkor sold a 12 km2 portion of its Oyadao South Exploration Licence, known as Phum Syarung, to Mesco Gold (Cambodia) Co., Ltd for US$1.8 million in cash. Angkor retained a sliding scale Net Smelter Return interest (“NSR” or “the Royalty”) ranging from 2.0% to 7.5% on any gold production. Mesco Gold is a subsidiary of $4B Indian steelmaker Mesco Steel Ltd.
On June 25 2018, Angkor announced that “underground sampling by Angkor at Mesco’s Phum Sayarung mine site yielded a 40.2 GPT gold sample.” Dennis Ouellette, VP Exploration stated: “I am impressed with the high gold values returned by the underground samples from the Mesco mine site.”
Angkor Gold Corp. has a market cap of C$ 19.6m.
Angkor Gold have positioned themselves in a key position in the underexplored and underdeveloped resource rich country of Cambodia. With strategic partners and government support, along with the World Bank’s expanded development, Angkor Gold Inc. could become a major exploration company in Cambodia in the years to follow.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>