Japanese company finalizes Cambodian deal with Australian miner

Mon, 19 May 2008
DPA

Phnom Penh - State-owned Japan Oil, Gas and Metals National Corp has formally committed to invest 4.5 million dollars in a joint venture in Cambodia with the Australian gold-exploration company Southern Gold Ltd, the company said Monday. Adelaide-based Southern Gold said in a statement to the Australian Securities Exchange that the deal would accelerate exploration on three Cambodian gold and base-metal projects in the north-east of Cambodia.

The announcement confirmed a March letter of intent.

Under the now formal terms, the Japanese firm must spend a minimum of 1 million dollars on the projects over the next 12 months and would make a total investment of 4.5 million dollars over three years to earn a 51-per-cent interest in the three tenements, it said.

Southern Gold has previously posted promising gold and base-metal predictions on the three projects from early exploratory research.

The Japanese firm said its objectives in the deal were securing a stable supply of oil, natural gas, nonferrous metals and minerals for Japan and, if exploratory results were positive, the equity interest would be transferred to a private-sector Japanese company.

Southern Gold's other investors in the project include Chinese resource investor CITIC as well as Australia's Macquarie Bank Ltd.

Japanese Joint Venture plan with Southern Gold in Cambodia

Sydney, Mar 26, 2008 (RWE Aust Business News) The Japanese government organisation, JOGMEC, plans to fund accelerated exploration on three Cambodian gold and base metal projects under a Letter of Intent with Southern Gold.

JOGMEC (Japan Oil, Gas and Metals National Corp) and Southern Gold will JV over three of Southern Gold's Cambodian tenements.

JOGMEC will invest $US4.5 million ($4.94m) within three years to earn a 51 per cent interest in Phnum Khtong (Kratie North project) and two adjoining blocks, Preak Khlong and O'Kthung (Kratie South project).

The agreement includes an up-front payment to Southern Gold of approximately $US400,000 on signing of the LOI for current exploration costs, followed by a decision to proceed with a full joint venture on the Kratie North and/or the Kratie South Projects by June 2008.

The three tenements are among eight gold projects, wholly or majority owned, by Southern Gold under its strategy to establish a cornerstone gold business in Cambodia to compliment the Australian gold projects.