ASIAN EXPLORATION — Cameco Gold forms alliance with Menzies Gold

Cameco Gold, a wholly owned subsidiary of Cameco (CCO-T), is zeroing in on gold exploration opportunities in Southeast Asia by forging an alliance with Menzies Gold (MZG-AUS) of Australia.

The two companies have inked a deal whereby Cameco Gold has the right of first opportunity to become Menzies’ partner in current or future exploration projects, subject to existing joint-Venture agreements. The two companies will also co-operate in acquiring gold exploration properties in Southeast Asia.

Cameco Gold is acquiring a 9% interest in Menzies by purchasing 9.5 million shares at A63 cents each for a total of A$6.2 million (C$6.7 million). Cameco Gold can acquire up to an additional 7.5 million shares, giving it a 14% interest in Menzies, at a maximum additional cost of A$4.5 million (C$4.9 million), not including options.

“Menzies can function as our spearhead into Southeast Asia,” says Cameco Gold President William Allan. “This alliance is solidifying our position in that part of the world.”

Cameco is especially interested in Menzies’ 55% stake in the Bau gold properties in southwestern Sarawak, Malaysia. The largest deposit at Bau — the Jugan — has been estimated to contain a gold resource of 9.7 million tonnes at 1.95 grams per tonne. Menzies also holds five tenements in Sarawak, under another agreement.

In January, Menzies Gold sold its subsidiary, Menzies Resources, for about $2 million to the unlisted Montreal-based company, Millennium Gold. Menzies Resources controls Siam Mining Company, which in turn owns assets in Thailand. Millennium, with Stuart Lee as president and Louis Desmarais as chairman, will likely be seeking a public listing before year-end.