Medusa Mining Limited (ASX:MML) has entered into a Memorandum of Understanding to explore for minerals Cambodia. The principal targets of the exploration will be gold and copper, although the licence is exclusive and will also cover oil and gas and precious stones.
Medusa’s partners in the project will be SEA Resources Pty Ltd and Sovann Resources, a related Cambodian entity of SEA, and the shareholders of Sovann.
SEA has been selected by the government of Cambodia as a qualified and priority company to apply for the grant of a metallic mineral exploration licence in the Prek Kampi region of Cambodia, and is in the final stages of securing the grant.
Under the terms of the MOU, Medusa and SEA have agreed to negotiate an earn-in whereby Medusa can acquire up to a 70% interest in the exploration licence.
The MOU is a non-binding framework to guide the parties in the finalisation of the key terms. Medusa and SEA have until 1 March 2018 to finalise the earn-in agreement.
As it stands, the thinking is that in return for up to 70% of the shares of the SEA entity that is granted the Prek Kampi exploration licence, Medusa will contribute up to a total of US$3 mln of exploration expenditure over a period of 4 years
“This is Medusa’s opportunity to expand its presence in South East Asia and fully align to the company’s longer-term strategic diversification plan, ” said Medusa chief executive Boyd Timler.
“Medusa continues to be a successful gold explorer and producer in the Philippines. This is exciting times for both Medusa and SEA Resources.”