PERTH (miningweekly.com) – ASX-listed junior Emerald Resources has entered into a memorandum of understanding (MoU) with fellow-listed Renaissance Minerals to earn a possible 51% interest in the Okvau gold project, in Cambodia.

Under the terms of the agreement, Emerald would sole fund a definitive feasibility study on the project, along with an environmental and social impact assessment, while also funding a two-year exploration programme worth $3-million.

The project is currently estimated to host some 15.8-million tonnes of indicated and inferred resource, grading 2.2 g/t gold for 1.13-million ounces of gold.

Renaissance in July last year completed a prefeasibility study for the development of a 1.5-million-tonne-a-year operation, which estimated that the project would require a capital investment of $120-million to produce some 91 500 oz/y over the mine life of eight years.

Emerald MD Morgan Hart said that the company had evaluated a number of strategic global resource opportunities, with the Okvau gold deposit and surrounding areas demonstrating excellent potential for the company to add significant value.

“We will focus on the development economics of the Okvau gold deposit by optimisation of capital and operating costs through process design and mining efficiencies as we have been able to deliver on gold projects in the past.”

Renaissance MD Justin Tremain said on Wednesday that the company was committed to taking the Okvau project forward, and in light of the current equity market conditions, believed that a joint venture (JV) with Emerald provided the most attractive funding options for shareholders.

“Renaissance shareholders retain significant ownership of the Okvau project with an exceptional development partner, and will benefit from any improvement in development economics and from future exploration success without the associated immediate funding obligations.”

The MoU was subject to a number of conditions precedent, including the execution of a farm-in and JV agreement, shareholder approval and the ASX granting Emerald conditional approval to reinstate its securities trading after a change of activities from oil and gas exploration, to gold exploration and development.

Emerald has meanwhile also subscribed for 57.4-million shares in Renaissance as part of an equity placement of 114.8-million shares, priced at 3c each to raise A$3.4-million.

Upon the completion of the placement, Emerald would hold a 10% interest in Renaissance, and would be entitled to the appointment of a nonexecutive director to the company’s board.