Last checked at 22 Oct 2010 09:09
22 October 2010
Solomon Gold Plc
("Solomon Gold" or the "Company")
Announcement to London Stock Exchange
Solomon Gold placing 54.02 million shares at £0.28 to raise £15.1 million
The Board of Solomon Gold Plc ("Solomon Gold" or "Company") is pleased to advise that the Company has entered conditional agreements for a placing of 54,017,153 shares at 28 pence per share for gross proceeds of GBP15,124,803 ($A24,199,684) (the "Placing") to institutional and private investors. Application is to be made for the new ordinary shares to be admitted to trading on AIM which is expected to take place on 9th November 2010 ("Admission").
In order to comply with the provisions of the Companies Act 2006 and the Articles of Association for Solomon Gold plc, it will be necessary for the Company to increase its authorised share capital and ratify the allotment and issue of certain shares at a General Meeting, convened for 9.00am on 8th November 2010 at HopgoodGanim, Level 7, Waterfront Place, 1 Eagle Street, Brisbane, Queensland, Australia, notice of which was posted to shareholders yesterday. The Placing is subject to and conditional upon, inter alia, the passing of the resolutions to be proposed at the General Meeting in order to increase the Company's authorised share capital to £5,000,000.
The Company has received undertakings from its major shareholders, which amount to approximately 56% of the Company's current issued share capital, to vote in favour of the increase of the Company's authorised share capital and the ratification of certain issuances of shares and therefore approval of these resolutions is assured at the General Meeting.
The funds raised will be used to continue the progression of the Company's exploration program at Fauro in the Solomon Islands over the next 12 months, including extensive mapping, sampling, trenching, geophysics and a 9,900 metre drilling program. The funds will also be used by the Company for additional near term drilling and a significant resource upgrade at the Rannes and Mt Perry Projects in Queensland. Solomon Gold recently announced highly encouraging sampling results at Fauro in the Solomon Islands, and drilling results from the Rannes Project in Queensland, Australia.
Nick Mather, Chief Executive of Solomon Gold, has subscribed for 1,116,071 Placing Shares in the Placing. Following completion of the Placing and Admission, Nick Mather will hold 37,706,233 ordinary shares in the Company representing 13.45% of the enlarged issued share capital of the Company following the Placing. UK resident Director, Dr Robert Weinberg also subscribed for an additional 29,762 shares taking his holding to 663,287 shares or 0.24% of the Company. All other Directors' interests remain unchanged.
Commenting on the placing, Nick Mather, Chief Executive of Solomon Gold stated:
"The Company has taken the opportunity offered by strong institutional investor interest to accelerate its planned drill program in Fauro following the very successful assay results seen in the recent trench and rock chip sampling results."
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
Miss Katy Birkin Tel: +44 (0)207 598 5368
Fairfax I.S. PLC (Broker)
kbirkin@fairfaxis.com
Mr Stephen Weir Tel: +61 (0)2 9250 0048
RFC Corporate Finance (Nominated Adviser)
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. Most importantly, the discovery in September 2010 of extensive and rich gold mineralisation on Fauro Island, just south of Bouganville 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 40 Moz gold equivalent metal endowment. The Company also holds a comprehensive and extensive tenement position on the main island of Guadalcanal where its JV partner, Newmont Ventures Inc (a subsidiary of NYSE-listed Newmont Mining Corporation) can earn a 51% interest in the project by expending USD6 million by 1 April 2012, and a 70% interest by expending a total of USD12m by 1 April 2014. The JV 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 22 km long prospective zone in a 200km long trend on the eastern edge of Queensland's Bowen Basin. 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 200,000 ounces has been defined to date at the Crunchie Prospect. The project lies on the edge of the Bowen Basin in the same geological setting as Newcrest's 100,000 ounce per year Cracow Gold Mine.
At Mt Perry, the Company is investigating a large area 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 15.91% of its issued share capital following the Placing.
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.