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Aurasian Minerals shares fly as unveils new Laos venture

Aurasian Minerals shares fly as unveils new Laos venture
Shares in Aurasian rose 130.16% to 0.725p.

Aurasian Minerals (LON:AUM) moved a step closer to unlocking the mineral wealth of Laos in Southeast Asia as it unveiled a new joint venture, sending shares in the company rocketing.

The tie-up is with Lao investment company Sahamit Phattana and the new group will undertake exploration in the country.

Bruce Kay,  Aurasian's chairman, told investors: "We are delighted to be forming this partnership with Sahamit, a highly respected and capable group with excellent in-country contacts. 

"Through the Aurasian team's deep knowledge of the area based over 20 years' experience in the country we believe that we are now in a very good position to take advantage of the highly prospective mineral potential of Laos."

Laos is a landlocked country with a population of around 7mln. Its neighbours are China Burma, Vietnam, Cambodia and Thailand.

Aurasian will hold a 70% stake in the new entity and Sahamit 30%. 

Ten percent of the Sahamit stake will be financed by Aurasian through a loan to be made to Sahamit, which will be repayable out of its share of any dividends paid by the joint venture company. 

Sahamit is involved in activities, which span agriculture, aquaculture, and construction and its president is Khuanchai Siphakanlaya - also president of Lao Consulting Group, a well-established and respected infrastructure contractor.

Shares in Aurasian rose 130.16% to 0.725p.

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