Last checked at 31 May 2011 08:40
31 May 2011
Announcement to London Stock Exchange
Issue of Equity
Following approval granted by shareholders at the Company's AGM on 24 May 2011, Solomon Gold plc (Solomon Gold or the Company) has today issued a total of 5,940,000 Incentive Options to Directors or their nominees. The options were granted for no consideration, and are exercisable at a strike price of 50 pence per share, any time the 30 day VWAP for the Company's share price exceeds 50 pence during the period from 31 May 2012 to 31 May 2014.
The interests of each Director in the options issued today are as follows:
Director | Number of options | % of options on issue |
Nicholas Mather | 2,200,000 | 17.4% |
Cameron Wenck | 1,100,000 | 8.7% |
Brian Moller | 880,000 | 6.9% |
Robert Weinberg | 880,000 | 6.9% |
John Bovard | 880,000 | 6.9% |
The option holdings outlined above represent the total interests of each Director in the options on issue in the Company, as all previous unexercised holdings expired on 31 December 2010.
The interests of Directors in the shares of the Company remains unchanged from the update released on 5 May 2011, but is reproduced here for completeness.
Director | Number of shares | % of issued share capital |
Nicholas Mather | 38,156,724 | 13.4% |
Cameron Wenck | 2,260,937 | 0.8% |
Brian Moller | 1,158,017 | 0.4% |
Robert Weinberg | 738,287 | 0.3% |
John Bovard | 591,365 | 0.2% |
*** ** ***
The Company now has 283,907,811 fully paid ordinary shares and 12,564,000 options on issue.
By order of the Board
Karl Schlobohm
Company Secretary
Contacts:
Mr Karl Schlobohm Tel: +61 (0)7 3303 0660
Solomon Gold Plc (Company Secretary)
kschlobohm@solomongold.com
Mr Ewan Leggat Tel: +44 (0)207 598 5368
Fairfax I.S. PLC (Broker)
eleggat@fairfaxis.com
Mr Stephen Weir Tel: +61 (0)2 9250 0048
RFC Corporate Finance (Nominated Advisor)
stephen.weir@rfc.com.au
Mr Dominic Barretto Tel: +44 (0)208 980 3545
Yellow Jersey PR (PR & IR)
dominic@yellowjerseypr.com
NOTES TO EDITORS
Solomon Gold Plc's original and core gold exploration projects are located on the Solomon Islands and are the major focus of the Company. The discovery in September 2010 of extensive and rich gold mineralisation on Fauro Island, just south east of Bougainville Island in neighbouring Papua New Guinea, presents Solomon Gold with potential for a world class gold and copper-gold-molybdenum discovery on the south west Pacific Rim of Fire. The region is one of the world's most strongly endowed gold and copper provinces, hosting Grasberg, Lihir, Panguna and Ok Tedi, each with in excess of 40Moz gold equivalent metal endowment.
The Company also holds a comprehensive and extensive tenement position on the main island of Guadalcanal where its JV partner, NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) can earn a 51% interest in the project by expending US$6million by 4 March 2012, and may elect to expend a further US$6million (total US$12million) to earn a further 19% to a total 70% by 4 March 2014. The GJV has outlined high priority gold-copper porphyry targets at Chikora, Mbetilonga, and Kuma.
Solomon Gold has also extended its strategy to include becoming an integrated gold explorer, developer and miner with projects in lower risk theatres as well as the Solomon Islands.
Solomon Gold's projects in Queensland include Rannes, Mt Perry and Normanby. At Rannes, the Company has outlined a 30km long prospective zone in a 200km long trend on the eastern edge of Queensland's Bowen Basin in the same geological setting as Newcrest's 100,000 ounce per year Cracow Gold Mine. This extensive exploration licence position hosts three mineralised projects at Cooper, Rannes Central and Police Camp. The exploration area is believed to host mineral systems which are geologically similar to the Carlin trend in Nevada USA. At Rannes Central, the Company has encountered potentially economic mineralisation in five different prospects targeted to yield at least 1 Moz. A maiden 200,000oz gold equivalent Inferred Mineral Resource was defined at the Crunchie Prospect, with in Central Rannes Project Area. With a further upgrade, from the Kauffmans / Homestead Prospect, also with in Central Rannes Area, Solomon Gold's total Inferred Mineral Resource Estimate is 12.3Mt at 1.02g/t gold equivalent for 404koz gold equivalent (244koz Au and 9.62Moz Ag) based on a 0.35g/t gold equivalent cut-off grade.
At Mt Perry, the Company is investigating an area of approximately 1,500km2 hosting over 50 historic mines and workings near Newcrest's Mt Rawdon Gold Mine. Mt Perry has yielded potentially economic drill intersections on nine of the ten prospects tested to date.
Solomon Gold's Board includes accomplished professionals with strong track records in the areas of exploration, mine development in Australia and Melanesia, investment, finance and law. Board and Management have significantly vested interests in the Company holding approximately 17.5% of its issued share capital.
Solomon Gold is based in Brisbane, Queensland, Australia. The Company listed on London's Alternative Investment Market in 2006. Further details concerning the Company's key projects and personnel can be found at www.solomongold.com