Standard & Poor’s announced today that it has commenced Factual Stock Report coverage on Olympus Pacific Minerals, Inc.
Olympus Pacific Minerals Inc. (OYM), together with its subsidiaries, engages in the acquisition, exploration, development, and mining of gold bearing properties in Southeast Asia. The company focuses its activities on two multi-project properties located in Central Vietnam, the 30-square-kilometer Bong Mieu Gold property and the 70-square-kilometer Phuoc Son Gold property; and an exploration project in the Philippines, the Capcapo property. Olympus has one gold plant in Vietnam.
The company holds mining and investment licenses covering 30 square kilometers within the Bong Mieu gold project in Vietnam. The investment license covers three deposits: Bong Mieu Central (an open pit), Bong Mieu East (a potentially open-pit deposit) and Bong Mieu Underground (an underground deposit). Olympus acquired this project in 1997. Olympus owns 80% and the company's Vietnamese partner owns 20% of the Bong Mieu project. The company constructed the Bong Mieu Central open pit mine and associated infrastructure in 2005 and 2006, and commercial gold production commenced in the fourth quarter of 2006. The company pays a 2% royalty based on 80% of the revenues of Bong Mieu Central to Zedex Minerals Limited. Once the Vietnamese partner meets its share of the funding requirements, the company must pay a 3% net smelter return royalty equal to 3% of the sales price when the gold is smelted in Vietnam.
In addition, the company holds an 85% interest in the Phuoc Son Gold Project with a focus on exploration, development and production of gold and other potential minerals in the specified project area, which is located in Phuoc Son and Nam Giang districts in the Quang Nam Province of Vietnam. In 2003, the company's subsidiary, New Vietnam Mining Company (NVMC), entered into a joint venture with Mien Trung Industrial Company (Minco), a mining company controlled by the local provincial government, to form the Phuoc Son Gold Company (PSGC). PSGC has an investment license on the Phuoc Son project. NVMC's initial interest in PSGC is 85% and Minco has a 15% interest.
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ZDX Price at posting:
7.0¢ Sentiment: LT Buy Disclosure: Held
