ANGKOR GOLD ANNOUNCES COMPLETION OF AGREEMENT TO BUYBACK 2.5% NSR ON PHUM SYARUNG MINE
GRANDE PRAIRIE, AB (December 16, 2016) ANGKOR GOLD CORP. (TSXV: ANK and OTC: ANKOF) (“Angkor” or “the Company”) CEO Mike Weeks announced today the completion of an all-shares buy back of the Net Smelter Return (“NSR”) interests sold to investors and related parties in 2014.
Further to the Company’s press release on November 29, 2016, the NSR interest holders received an amount equal to 130% of their original purchase price of $875,000 USD in exchange for the NSR interests, which amount was paid by the Company in common shares of Angkor at a deemed price of $0.40 CDN per share for a total of 3,810,625 common shares. The common shares are subject to a hold period of four months from the date of issue.
As originally reported in a Company press release dated May 2, 2014, the Company sold to shareholders and related parties of Angkor an aggregate of 2.5% of the Company’s sliding scale NSR interest to come from Mesco Gold (Cambodia) Ltd. (“Mesco”) on Mesco’s Phum Syarung mine located in northeastern Cambodia. The sale of the NSR interests raised capital for the Company of $875,000 USD at that time, and included an option for Angkor to buy back the NSR interests once Mesco received licensing and moved closer to production. The buy back options of the original sales agreements were originally to be priced after one year at between 130% and 150% of the original sale price, however the Company subsequently negotiated a uniform rate for all parties’ buy back at 130%, and that the buy back be fully in stock in lieu of cash. A no-cash, all-stock buy back preserves the Company’s working capital.
With the completion of the buy back, Angkor once again owns the original full NSR interest on all future production from Mesco’s Phum Syarung mine, which is based on a sliding scale from 2.0% to 7.5%, based on gold price, the terms of which were announced in company press releases dated November 14, 2013 and January 12, 2016.
ABOUT ANGKOR GOLD CORP.
ANGKOR Gold Corp. is a public company listed on the TSX-Venture Exchange and is Cambodia’s premier mineral explorer with a large land package and a first-mover advantage building strong relationships with all levels of government and stakeholders.
ANGKOR’S six exploration licenses in the Kingdom of Cambodia cover 1,352 km2, which the company has been actively exploring over the past 6 years. The company has now covered all tenements with stream sediment geochemical sampling and has flown low level aeromagnetic surveys over most of the ground. Angkor has diamond drilled 21,855 metres in 190 holes, augured 2,643 metres over 728 holes, collected over 165,000 termite mound samples and ‘B’ and ‘C’ zone soil samples in over 20 centres of interest over a combined area of more than 140km2, in addition to numerous trenches, IP surveys and detailed geological field mapping.
FOR FURTHER INFORMATION PLEASE CONTACT: ANGKOR GOLD CORP. Stephen Burega, Vice President of Corporate Development Telephone: (647) 515-3734 Email: firstname.lastname@example.org
Website at: http://www.angkorgold.ca or follow us @AngkorGold for all the latest updates.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain of the statements made and information contained herein may constitute “forward-looking information”. In particular references to the private placement and future work programs or expectations on the quality or results of such work programs are subject to risks associated with operations on the property, exploration activity generally, equipment limitations and availability, as well as other risks that we may not be currently aware of. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Category: Press Release
By Angkor Gold on December 16, 2016