15 April 2014
Angkor Gold Corp.
(TSX: V.ANK, Stock Forum) has entered into a strategic alliance with Hong
Kong-based Tohui Beishan Property Group Holding Ltd. (TG) that could provide up
to $10.5 million for exploration in Cambodia, Angkor said Monday.
The strategic alliance
between Angkor and TG includes TG’s ability to acquire up to 15.8 million
shares of Angkor and up to 15% of the share capital of its wholly-owned
Cambodian subsidiary, Angkor Gold Cambodia over the next 12 months.
Angkor said TG brings
to the alliance a consortium of associates, including Beijing Eplo-Tech
Engineering Co. Ltd. (BETEC) and the China Chemical Geology and Mine Bureau
Shandong Geological Prospecting Institute.
Terms of the alliance
include the following:
The private placement
by TG of $2.25 million for 79 million units of Angkor, each consisting of one
common share at 28.5 cents a share and one non-transferable warrant.
The issuance to TG of
an option to purchase 15% of the shares of Angkor Gold Cambodia at $4.2 million
until June 30, 2015.
TG will be entitled to
a seat on the board of Angkor upon closing of the transaction.
TG will also be
entitled to a seat on the board of Angkor Gold Cambodia upon closing of the
Angkor Gold option.
Angkor said 80% of the
proceeds will be used to fund exploration activities in Cambodia, where the
junior has seven exploration licenses covering 1,448 kilometres.
Angkor shares rose 5%
to 32 cents Monday, leaving a market cap of USD25.4 million, based on 79.5
million shares outstanding. The 52-week range is 43 cents and 27 cents.
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