Sea Resources Pty Ltd and its subsidiary Sovann Resources Co., Ltd recently signed a memorandum of understanding (MoU) with Australia-based Medusa Mining on exploration rights in the Prek Kampi district in Kratie province.
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The exploration project will mainly target gold and copper, but oil, gas and precious stones will also be collected, according to a statement released by Sea last week.
Sea is now in the final stages of securing a metallic mineral exploration licence, after being named a priority company by the government for conducting mining operations in the Prek Kampi area.
“Under the terms of the MoU, Medusa and Sea have agreed to negotiate an earn-in agreement under which Medusa can acquire up to a 70 percent interest in that exploration licence,” the statement said.
“The MoU is a non-binding framework to guide the parties in the finalisation of the key terms of the arrangement that will be agreed in a binding earn-in agreement.
“Medusa and Sea have until March 1, 2018 to finalise the earn-in agreement.”
During that negotiation period, Medusa’s rights are exclusive and Sea cannot negotiate with other parties regarding the interest in the exploration opportunity.
If Medusa and Sea do not enter into an earn-in agreement before March 1, the MoU will terminate and the parties will be released from any obligations.
Medusa’s managing director Boyd Timler said they consider Cambodia an emerging location in Southeast Asia for mineral explorations.
“Medusa is pleased to be partnering with Sea, who has significant knowledge of the geology, mineral endowment and exploration activities within Cambodia.”
“This is Medusa’s opportunity to expand its presence in Southeast Asia and fully align with the company’s long-term strategic diversification plan,” he said.