When investors think of gold production capitals of the world, Cambodia is probably not the first country that pops into their minds. It should be worth noting, however, that gold exploration in the southeastern-Asian country only began less than 20 years ago and has produced several significant finds.
Australian miner OZ Minerals Ltd continues exploration on their property that last year reported a discovery of 8.1 million tonnes of ore in rural Cambodia that it believes can produce 605,000 ounces of gold. That amount equates to figures approaching $1 billion at today’s current market value.
Montreal-based Shamik2Gold, Inc. (OTCBB:SHMX) also believes that there is great value in Cambodia for not only gold, but also rubies. While not widely discussed, back in the 1970s and 1980s, Cambodian rubies reigned supreme, even over the famed Burmese ruby.
Shamik2Gold hopes to capitalize on the new exploration and modern technologies that have been brought to Cambodia to explore for precious metal and stone in a now stable political environment that kept foreign explorations at arm’s length for so many years.
Today, the Company announced that it has acquired 85% of MIG International Mining Group, a Mauritius company, which holds a concession of a gold and ruby exploration license in Cambodia which covers nearly 160 square miles in the Samlaut district of Cambodia.
The transaction was executed as Shamika acquired the capital stock of MIG in exchange for 57,000,000 shares of Shamika common stock and shares of Series B Performing Preferred Stock entitling the holder to 45% of the net operating profit from the mining project. The issued shares will remain in escrow until MIG obtains all the required production licenses and has begun commercial production for a period of two months.
Terra Insight Services, Inc. a subsidiary of Terra Energy & Resource Technologies, Inc. (OTCBB:TEGR) has performed several survey reports on Cambodian properties using utilizing Sub Terrain Prospecting Technology (STeP®). A Phase 1 & 2 Survey Report on the area suggests potential for 1.5 million ounces of gold and 9,000 kilograms of rubies, exceeding the estimates of the significant reports by OZ Minerals.
Emerging markets are being targeted by companies of all shapes and sizes today and are the topic of many analyst discussions for the future of many industries and markets. Cambodia now has several companies from countries such as China, Australia, Vietnam and South Korea which have staked positions banking on the discovery of valuable resources of this little-explored piece of the earth.
With the acquisition of MIG International Mining Group, Shamik2Gold, Inc. is hoping to capture its fair share of the emerging gold market of Cambodia and restore the prevalence of ruby mining to days gone by as revenue is anticipated to be derived within the next nine to 12 months.
