Angkor Gold Announces Agreement to Buyback 2.5% NSR on Phum Syarung Mine
GRANDE PRAIRIE, AB--(Marketwired - November 29, 2016) - ANGKOR GOLD CORP. (TSX VENTURE: ANK) (OTC PINK: ANKOF) ("Angkor" or the "Company") is pleased to announce that it has agreed to an all-shares buyback of the NSR interests sold to investors in 2014.
As previously announced on May 2, 2014 (http://www.angkorgold.ca/angkor-sells-portion-of-7-5-nsr-on-phum-syarung-gold-production-for-875000/), the Company sold Net Smelter Return ("NSR") interests for an aggregate of 2.5% of the Company's 7.5% NSR 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 2.5% was sold to shareholders and related parties of Angkor.
The NSR interest holders have agreed to accept an amount equal to 130% of their original purchase price of $875,000 USD in exchange for the NSR interests, which amount will be payable 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 will be subject to a hold period of four months from the date of issue. There will be no cash component to the buyback. Issuance of the common shares is subject to the approval of the TSX Venture Exchange (TSXV). The Company expects to complete the buyback within three business days of receipt of TSXV approval.
Upon completion of the buyback, Angkor will once again own the full NSR on all future production from Mesco's Phum Syarung mine, which NSR will range from 2.0% to 7.5%, based on a sliding scale gold price, the terms of which were announced in company press releases dated November 14, 2013 and January 12, 2016.
"Angkor is very fortunate to have a very strong and supportive shareholder base," said Mike Weeks, CEO and Chairman of Angkor Gold. "The original transaction provided funding for Angkor's 2014 work programs, and I believe that the completion of the all-stock buyback further shows their continued support for our growing company."
"The next phase of our exploration programs will be fully funded this quarter through by our project partners," said J.P. Dau, Angkor's VP of Operations. "We anticipate a very busy schedule working with JOGMEC and Blue River Resources over the coming months as we expand our understanding of both the Halo and Okalla West prospects."
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.
Contact
FOR FURTHER INFORMATION PLEASE CONTACT:
ANGKOR GOLD CORP.
Stephen Burega
Vice President of Corporate Development
Telephone: (647) 515-3734
Email: sb@angkorgold.ca