Australia's Transol Corporation has entered into a joint venture agreement with Canada's Prairie Pacific Mining on the Banlung and Oyadao gold and base metal projects in Cambodia.
The deal gives Transol US$1m cash and allows it to maintain free carried interest in both projects.
Prairie can gain a 51% stake by investing $2m across the projects within two years and by making additional cash payments of $1m to Transol.
Prairie can then up its stake to 70% by investing another $2m within four years of the Letter of Intent being signed or increase it to 90% with a further cash payment to Transol of $1.5m.
The joint venture will reduce working capital expenditure while allowing it to maintain considerable equity exposure to both projects, Transol said.