Canadian exploration company Angkor Gold announced this week that it agreed to an all-shares buyback of the net smelter return (NSR) interests on the Kingdom’s first commercial underground gold mine in Syarung village of Rattanakiri province’s O’Yadaw district, which the mining firm sold to Indian-owned Mesco Gold (Cambodia) for $1.2 million in 2013.
Angkor Gold sold an aggregate 2.5 percent NSR interest on the mine to investors to raise $875,000 for operations, according to an statement issued by the company. “Angkor Gold included an option for the company to buy back the NSR interests once Mesco received licensing and moved closer to production,” read a company statement.
Angkor Gold has now agreed to buy back this portion of its NSR interest in the mine for an amount equal to 130 percent of their purchase price.
In September the Ministry of Mines and Energy issued Cambodia’s first industrial mining license to Mesco Gold, with a 30-year concession to operate the underground gold mine in O’Yadaw district. Preliminary mining operations by Mesco Gold have begun in Pheak village at the fringe of the Syarung gold mine.
For more on this story, click here.