Last checked at 2 Apr 2013 07:51
2 April 2013
SolGold Plc
("SolGold" or the "Company")
Announcement to London Stock Exchange
SolGold Placement 119.8Million Shares at £0.015 to Raise AUD2.6Million
Funds to be Used Largely for Exploration and Drilling in Ecuador Following Recent Encouraging Assay Results
The Board of SolGold Plc (AIM code: SOLG) is pleased to advise that the Company has entered agreements for a placing of 119,801,376 shares at £0.015 per share for gross proceeds of AUD2.6million with institutional and private investors. The shares are expected to be admitted to trading on AIM on 8 April 2013.
The Company's management and a number of existing shareholders and clients of the Company's broker SP Angel supported the placement. The Company now has a total of 544,044,342 fully-paid ordinary shares 10,700 Convertible Redeemable Preference Shares, 9,472,000 options exercisable at 50p, 1,250,000 options exercisable at 28p and 1,250,000 options exercisable at 14p on issue.
The Company recently announced highly encouraging gold and copper assays from all follow-up trenching at its Alpala Prospect within the Cascabel Project in Ecuador. These results significantly expand the area of mapped and mineralised porphyry gold-copper stockwork veining in the Alpala region.
Highlights of the latest trenching results included:
·; 56.93m at 1.16 g/t gold and 0.34% copper (including 26.52 m at 1.87 g/t gold and 0.17% copper) - Two higher grade copper results (>1% Cu) are being re-assayed;
·; 21.45m at 0.47 g/t gold and 0.42% copper;
·; 45.50m at 0.46 g/t gold and 0.25% copper;
·; High gold grades in areas of hydrothermal brecciation: 26.52m grading 1.87 g/t gold;
·; Peak gold and copper grade (0.35m massive sulphide vein) at 12.2 g/t Au and 43.67% (cut to 10%);
·; Consistent grade throughout most of the length of the new trenches reveals potential for a bulk mineable position at surface.
The Company intends to use the majority of funds raised to continue to progress its exploration and drilling at Cascabel. A smaller proportion of funds will also be used to continue exploration at the Rannes project in Queensland, Australia.
Nick Mather, Executive Director of the Company said:
"The Placing received good institutional support and the proceeds will enable us to continue exploration and drilling at Cascabel, as well as further exploration at Rannes. Currently demonstrated gold and copper grades are commensurate with those of economic porphyry systems within the region, and importantly distinguish Cascabel as a high grade example. The Company has an active field program underway, designed to bring this compelling porphyry target to a drill testing stage in the coming months. The Company recognises support from its existing shareholders and welcomes new shareholders."
An updated position for the participating Directors and substantial shareholders will be published once the shares have been admitted to trading.
By order of the Board
Karl Schlobohm
Company Secretary
Contacts:
Mr Nicholas Mather Tel: +61 (0)7 3303 0680
SolGold plc (Executive Director)
nmather@solgold.com.au
Mr Karl Schlobohm Tel: +61 (0)7 3303 0661
SolGold plc (Company Secretary)
kschlobohm@solgold.com.au
Mr Ewan Leggat / Katy Birkin Tel: +44 (0)20 3463 2276
SP Angel Corporate Finance LLP (Broker)
ewan.leggat@spangel.co.uk
Mr Stephen Weir Tel: +61 (0)2 9250 0048
RFC Ambrian Limited (Nominated Advisor)
stephen.weir@rfcambrian.com
Mr Dominic Barretto / Anna Legge Tel: +44 (0)20 3664 4087
Yellow Jersey PR Limited (Financial PR)
dominic@yellowjerseypr.com
NOTES TO EDITORS
SolGold's exploration projects are located in northern Ecuador, Australia, and the Solomon Islands. In Ecuador, they comprise of a JV with Cornerstone Capital Resources Inc. on the Cascabel gold-copper project. In Australia, SolGold holds 100% of the Rannes, Mt Perry, Cracow West and Normanby Projects, all in southeast Queensland and in the Solomon Islands they comprise the Fauro Project (located on Fauro Island), and the Guadalcanal Joint Venture with Newmont Mining Corporation.
In July 2012, SolGold and Cornerstone Capital Resources Inc. announced that they had signed a Definitive Option Agreement whereby SolGold may acquire up to 85% of Cornerstone's 100% owned 5,000 hectare Cascabel gold-copper-silver property in northern Ecuador.
The Cascabel project is located approximately 120 km north of Ecuador's capital, Quito, 20 km south of the Colombian border, and 75 km inland from the coastal city of San Lorenzo. The gold-copper porphyry project is located within the Andean western cordillera, host to numerous Tier 1 world class copper-gold deposits through Chile, Peru, Ecuador and Colombia.
At the Rannes project SolGold has announced Indicated and Inferred resources of 18.7 million tonnes at 0.9 g/t gold equivalent (gold + silver) for 550,146 ounces of gold equivalent (296,657 ounces of gold and 10,137,736 ounces of silver; see announcement dated 23 May 2012 for details of the resource statement and gold equivalent ratios). Exploration continues at Mt. Perry, Normanby and Cracow West.
In the Solomon Islands, a JV partner is being sought for the Fauro project to pursue drilling of gold-copper targets defined in the 2011 exploration program. The Guadalcanal Joint Venture (GJV) with NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) is to be terminated following finalisation of divestment agreements outlined in this announcement.
SolGold's strategy is to be an integrated gold and copper discoverer, developer and miner.
SolGold's Board includes accomplished professionals with strong track records in the areas of exploration, mine development, investment, finance and law. Board and Management have significantly vested interests in the Company, holding approximately 11.5% of its issued share capital.
SolGold is based in Brisbane, Queensland, Australia. The Company listed on London's Alternative Investment Market in 2006, under the AIM Code 'SOLG' and currently has a total of 544,044,342 fully-paid ordinary shares, 10,700 Convertible Redeemable Preference Shares, 9,472,000 options exercisable at 50p, 1,250,000 options exercisable at 28p and 1,250,000 options exercisable at 14p on issue. Further details concerning the Company's key projects and personnel can be found at www.solgold.com.au