12th May 2015 09:23
LONDON (Alliance News) - Aurasian Minerals PLC saw its shares more than double Tuesday after it said it has agreed to form a joint venture in Laos with investment firm Sahamit Phattana that will undertake exploration and mineral development activities in the country.
"The board of Aurasian has identified Laos as an area having high mineral development potential, and is under-explored by modern systematic exploration methods," the company said.
Aurasian said it will hold a 70% stake in the new venture with Sahamit holding the rest. Cost contributions will be on a pro-rata basis. Aurasian will also finance one-third of Sahamit's 30% stake with a loan.
"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," Aurasian Chairman Bruce Kay said in a statement.
Aurasian Minerals shares were up 0.335 pence at 0.540 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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