Canadian mining company Angkor Gold has announced that Cambodia's Ministry of Mines and Energy has issued a licence for Mesco Gold’s Phum Syarung mine.
Approval of the licence on 12km² represents the final step for Mesco Group-owned Mesco to bring its Phum Syarung gold mine into production.
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By GlobalDataIn 2013, Mesco Gold had signed an agreement to acquire the rights to develop and mine Phum Syarung from Angkor.
In return, Angkor negotiated a net smelter royalty agreement to get a share of any gold that would be extracted from the mine, the Phnom Penh Post reported.
Mesco Group chairman JK Singh said: “With the grant of the first fully approved mining licence in Cambodia to Mesco Gold, a new stage in the evolution of the mining industry in the country has begun, which so far was limited to exploration only."
Angkor will retain a sliding scale 2% to 7.5% net smelter return (NSR) on the project.
Angkor Gold operations vice-president JP Dau said: “This is a very important transaction for Cambodia.
"We are now working with our partners Jogmec and Blue River towards building a better understanding of our joint-venture projects with an end-goal of securing future income streams for the company."
Angkor’s six exploration licences in Cambodia cover 1,352km², which the company has been exploring over the past six years.
