A Japanese state run company and the Australian mining company Southern Gold will enter into a multimillion-dollar joint venture in Cambodia, the Mekong Times newspaper said Friday.
In the announcement posted on Southern Gold's website, the company said the joint venture would involve three of Southern Gold's exploration licenses in Cambodia and the Japan Oil, Gas and Metal's National Corporation, which would fund accelerated exploration of gold and base metal projects in the kingdom.
A letter of intent signed by the companies said the Japanese firm would invest 4.5 million U.S. dollars in the exploratory tenements in Cambodia's northeast within three years, earning it 51 percent interest.
An initial payment of 400,000 U.S. dollars would be made to Southern Gold for current exploration costs, followed by a full joint venture by June, Southern Gold said.
"The joint venture will enable Southern Gold to bring forward exploration schedules and, therefore potential discoveries in Cambodia, which we regard as one of the world's great mining frontiers," Southern Gold Managing Director Stephen Biggins said in the announcement.
Source: Xinhua
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