12 May Joint Venture in Laos with Sahamit Phattana
JOINT VENTURE IN LAOS WITH SAHAMIT PHATTANA
· Aurasian Minerals and Lao company Sahamit to form joint venture
· Partner shares 70% Aurasian and 30% Sahamit
· Partnership will undertake exploration and mineral development activities in Laos
Aurasian Minerals PLC (AIM:AUM) is pleased to announce that it has agreed to form a Joint Venture with Lao investment company Sahamit Phattana (“Sahamit”) to undertake exploration and mineral development activities in Laos.
The board of Aurasian has identified Laos as an area having high mineral development potential, and is under-explored by modern systematic exploration methods. Successful mineral development also offers great economic, social and community benefits for Laos, when carried out responsibly to high standards.
Sahamit is a Lao investment company with activities in Agriculture, Aquaculture, Real Estate, Construction, Mining, Hydropower, and Renewable Energy. Its President is Khuanchai Siphakanlaya, who is also President of Lao Consulting Group, a well-established and respected infrastructure contractor in Laos. Khuanchai Siphakanlaya has high standing in the Lao business community and he will be a valuable partner to the Company as it implements its strategy.
Aurasian and Sahamit intend to establish a joint venture company, incorporated in Laos, in which Aurasian will hold a 70% equity stake and Sahamit 30%. The parties will contribute to all exploration and development programs and all in-country costs on a pro-rata basis. Of Sahamit’s 30% stake 10% will be financed by Aurasian through a loan to be made to Sahamit upon terms to be agreed. Such loan will be repayable by Sahamit out of its share of any dividends paid by the joint venture company. The remainder of Sahamit’s contribution will be self-funded.
Bruce Kay, Chairman of Aurasian said: “We are delighted to be forming this partnership with Sahamit, a highly respected and capable group with excellent in-country contacts. Through the Aurasian team‘s deep knowledge of the area based over 20 years‘ experience in the country we believe that we are now in a very good position to take advantage of the highly prospective mineral potential of Laos.“
Khuanchai Siphakanlaya, President of Sahamit said: “We are delighted to be partnering with an organisation as professional and experienced as Aurasian Minerals, and we look forward to working with Aurasian in pursuing exploration and mineral development activities in Laos where we believe that successful exploration by experienced companies like Aurasian is the key to unlocking the mineral wealth of the country“
Aurasian Minerals Plc
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finnCap Limited – nominated adviser
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