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Under the agreement, Hommy will be able to acquire up to 80% of Banlung by reaching three milestones.
These include spending $500,000 on exploration and development within one year, as well as paying Angkor $150,000 in cash. This will give Hommy a 20% stake in the licence.
It can then elect to increase its interest to 51% by spending another $2.8 million on exploration and development within two years from the earning of the first option, as well as paying $200,000 in cash to Angkor.
The final 29% can be acquired by completing a definitive feasibility study before March 7, 2022.
Once this is done, Angkor will decide whether it want to keep the remaining 20% interest or convert it into a 3.5% net smelter royalty.
Hommy could be given the choice to buy back up to a 1.5% NSR from Angkor for a mutually agreed amount, reducing the latter's NSR to 2%.
If the parties decide to mine, they will both fund the development and operation in proportion to their interests.
The Banlung property includes the Okalla West and Okalla East prospects, with drilling expected to start in the upcoming dry season.
Angkor said initial drilling at Okalla West would aim at prospective structurally hosted gold anomalies, with gold, zinc, arsenic and lead anomalies being the top priority.
