Mesco Gold, an associated company of India-based Mesco Steel, will sign an agreement with Angkor Gold to mine the Phum Syrang prospect on one of its economic land concessions in Ratanakkiri province.

A statement released by Angkor Gold said the agreement was about putting the company in a position of potential gold production.

“Mesco Gold has complementary skills sets and ambitions, and I am confident they are the right company to take Phum Syarung into production,” Angkor Gold chief executive Mike Weeks said.

Mesco will pay $1.2 million for the rights to mine. A feasibility study has yet to be completed, meaning there is no certainty it will be viable.

Cambodian Association of Mining and Exploration Companies president Richard Stanger is confident the mine will be viable.

“We’ve been exploring the area since 2006. We’ve been drilling holes and there’s plenty of gold there,” Stanger said.

To contact the reporter on this story: Daniel de Carteret at [email protected]