Angkor Gold Corp. announced that it has entered into a Memorandum of Understanding with Mesco Gold Ltd. to develop and mine Angkor's Phum Syarung prospect (PS), located within its Oyadao South Concession, Ratanakiri Province, Cambodia. A Definitive Agreement (DA) has been drafted and will be signed with Mesco Gold.

Angkor has entered into an MOU regarding the rights to mine, process and sell the minerals/metals obtained from the PS prospect (Rights). The Rights cover 6 km2 of Angkor's 247 km2 Oyadao South Concession. Mesco Gold, in partnership with Angkor, will further the exploration of PS and if warranted by results put it into gold production for which Angkor will receive $1,200,000 and a 10% Net Smelter Royalty (NSR) from all production.

Mesco Gold anticipates a rolling start to production by early 2015 and has the ambition of becoming a mid-size gold producer in Cambodia. At this time there is no current resource estimate and a feasibility study has not been completed so there is no certainty the proposed operation will be economically viable. Angkor is Cambodia's premier gold explorer with a significantly large land package containing multiple prospects.

Recent drill results at the PS project include 16.67g/t over 4.05m. Geologically, PS appears to be a shear zone with polymetallic mesothermal quartz veins showing multiple intercepts with a strike of 275m, open at both ends and at depth. Under the terms of the MOU: Angkor will grant Mesco Gold the full exclusive right to mine, process and sell all minerals and metals from PS in exchange for cash payments totaling $1,200,000 and a 10% NSR from all future production generated from PS.

The payment will take the form of $700,000 and a promissory note of $500,000 upon executing the DA. The promissory note is payable on the later date of six months from closing or when the Cambodian government grants a preliminary exploitation licence for PS. The terms of the DA are agreed upon and it will be signed once Mesco Gold has completed its incorporation and registration process in Cambodia, which is expected within the next 30 days.

The companies have agreed that it would be mutually beneficial to collaborate on the PS prospect to further these aims.