VANCOUVER, British Columbia, Jan. 3, 2013 (GLOBE NEWSWIRE) -- ANGKOR GOLD CORP. (TSX-V:ANK) ("ANGKOR") is pleased to announce that it has entered into a purchase and sale agreement with All Solutions (Cambodia) Co. Ltd., a privately held company in partnership with Chinese gold miner, Canxiang Mining Co Ltd. (" Allsol") pursuant to which Angkor has agreed to sell to Allsol all of its right, title and interest in and to a 78 km 2 subsection of its 300 km 2 Oyadao tenement in exchange for two million and four hundred thousand US dollars (USD $2,400,000). Under the agreement, it is intended that a new exploration licence covering the subsection to be sold to Allsol (the " Allsol Licence") will be issued to Allsol and that a new exploration licence covering the remaining 222 km 2 (the " New Oyadao Licence") will be issued to Angkor.
Angkor will retain 100% ownership of the New Oyadao Licence, which contains other highly prospective areas of interest, including Phum Puik, Sesan North and Phum Lomh, all of which have significant gold anomalies.
- Angkor secures non-dilutive financing for the 2013 exploration season by selling a subsection of the Oyadao tenement in Ratanakiri province, Cambodia for USD $2,400,000.
- Angkor receives a renewed exploration agreement (the New Oyadao Licence) for the remaining section of the Oyadao tenement, at no cost to Angkor.
- Angkor Gold is Cambodia's Premier Gold Explorer with a remaining land package that includes 5 licences containing multiple prospects.
- Angkor retains the Phum Puik, Sesan North and Phum Lomh Prospects within the New Oyadao Licence, all of which have significant gold anomalies.
- Payment is held in escrow until issuance of both new licences, which is expected to take place within 45 days.
- Upon completion of the transaction, Angkor will have no residual rights or obligations under the current Oyadao licence or the Allsol Licence
- A significant return on exploration investment.
- A transaction in-line with other recent deals in frontier opportunities.
- A transaction with a company that fully intends to move into production and which therefore will set a useful precedent for Angkor's surrounding prospects.
- Cash provisions in excess of Angkor's 2012 annual operating expenditures.
- Secured funding to continue Angkor's 2013 drill and exploration programs (see separate announcement in due course).
- Opportunity for Angkor Gold to focus on its other major projects.