Grande Prairie, Alberta--(Newsfile Corp. - May 2, 2014) -
ANGKOR GOLD CORP. (TSXV: ANK) ("ANGKOR") is
pleased to announce that a consortium of investors have purchased
an aggregate of 2.5% of the 7.5% Net Smelter Royalty ("NSR") on the
Phum Syarung gold prospect. Of the 2.5% NSR sold, 1.0% was sold to
related parties of Angkor. The money was raised on the basis of
$175,000 per 0.5% and carries a buy back clause by Angkor. A total
of $875,000 was raised. The proceeds of the sale are being used to
fund ongoing exploration in Cambodia and to eliminate debt.
Angkor owns an NSR on all future production at Phum Syarung by
Mesco Gold Ltd. ("Mesco"). The NSR is based on a sliding scale gold
price as announced on November 14th 2013 and at the current spot price of gold, the NSR
would be 7.5% .
Mike Weeks, CEO of Angkor Gold commented, "This is a win/win.
The NSR is being purchased by existing shareholders and provides
the Company with a non-dilutive source of funds for exploration,
further prospect generation, and license obligations. The buyback
gives Angkor the flexibility to regain that portion of the NSR as
Mesco is closer to production.
ANGKOR's 7 exploration licences in the Kingdom of
Cambodia cover 1448 km
2, which the company has been actively exploring over
the past 5 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
augered 'C' zone soil samples and over 48,000 termite mound samples
in 17 centres of interest, over a combined area of 80km
2, in addition to numerous trenches and detailed
geological field mapping. Exploration on all tenements is
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
Because the value of the NSR sale is less than 25% of Angkor's
market capitalization, Angkor is exempted from the requirement to
have a formal valuation and from the requirement for minority
shareholder approval with respect to the transaction. As of the
date of this press release, based upon the last closing price of
Angkor's common shares on the TSX Venture Exchange, Angkor's market
capitalization is CA$28,616,440.
The transaction was approved by the Board of Directors of
Angkor, with those directors who intended to purchase a portion of
the NSR abstaining from voting.
FOR FURTHER INFORMATION PLEASE CONTACT:
ANGKOR GOLD CORP.
Mike Weeks, President
Telephone: (780) 568-3801
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