Indochina to sell Vietnamese properties

Indochina Goldfields (ING-T) will sell its interests in two adjoining gold exploration prospects in Vietnam to Olympus Pacific Minerals (OYM-V).

The sale, worth US$7.5 million in cash and shares, would see Indochina Goldfields (IG) recover its acquisition and exploration costs at the Bong Mieu and Tien Ha licence areas, and acquire 19.5% of Olympus’ shares.

IG has larger projects under way in Kazakstan, Indonesia and Myanmar, and has been unable to allocate the necessary resources to develop the Vietnamese properties.

Olympus will acquire Indochina’s Vietnamese subsidiary and manage a joint venture comprising itself, IG and New Zealand-listed Iddison Group Vietnam.

Singapore-based IG will retain a 2% royalty on future production from those properties, and from any other projects the joint venture acquires.

Olympus is already involved in a joint venture with Iddison Group on the Na Pai gold prospect in northern Vietnam.

In related news, IG will join Olympus and Iddison in an effort to explore the Phuoc Son area, subject to the approval of the Vietnamese government.

Terms call for the transfer of IG’s Vietnamese subsidiary to Olympus in return for US$3.7 million by May 31, and another US$1 million one year later.

IG’s chairman is mining promoter Robert Friedland, who holds 34% of the company’s shares.