Angkor Gold Corp.said May 9 that it has entered into a definitive agreement with , in which thelatter can acquire up to a 70% interest in the company's Banlung gold tenement in Cambodia.
Under the deal, Blue River can initially acquire up to a 50%stake in Banlung through three options with a total exploration investment of US$3.5million over a four-year period.
Once the first three options have been satisfied, Blue Rivermay then exercise its option on an additional 20% interest by completing a bankablefeasibility study on the property.
Upon completion of the fourth option, Angkor will maintain a30% stake on Banlung, or convert at its discretion to a 5% net smelter return royalty.
The company also plans to continue its current work programson two priority prospects — Halo on the Oyadao South licenses and Peacock on the license.