Phnom Penh (dpa) - A Japanese state-run company and the Australian mining company Southern Gold Ltd said Wednesday that they would enter into a multimillion-dollar joint venture in Cambodia.
In the announcement posted on Southern Gold's website, the company said the joint venture would involve three of Southern Gold's exploration licences in Cambodia and would see Japan Oil, Gas and Metals National Corp fund accelerated exploration on gold and base-metal projects there.
A letter of intent signed by the companies said the Japanese firm would invest 4.5 million US dollars in the exploratory tenements in Cambodia's north-east within three years, earning it 51-per-cent interest.
An initial payment of 400,000 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, a potential discovery in Cambodia, which we regard as one of the world’s great mining frontiers," managing director Stephen Biggins said in the announcement.
Southern Gold said the agreement is the first Japanese investment in its projects, whose larger shareholders include Chinese resource investor CITIC and Australia's Macquarie Bank Ltd.
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