Appointment of CEO

RNS Number : 4189E

SolGold PLC

10 May 2013

 



10 May 2013

SolGold Plc

("SolGold" or the "Company")

Management Change

Mr Alan Martin appointed as CEO

HIGHLIGHTS

Ø Alan Martin appointed as CEO after 5 years at Colonial First State, specialising in junior mining and exploration companies.

Ø Alan has a significant personal investment in SolGold.

Ø His exploration focus has enabled junior companies to add shareholder value.

Ø Drilling plans imminent at Cascabel_.

The Directors of SolGold plc (LSE:AIM SOLG) are pleased to announce the appointment of Mr Alan Martin (51) as Chief Executive Officer of SolGold and its subsidiaries, effective today.  Mr Nicholas Mather will continue to remain as an Executive Director of the Company to assist Mr Martin during a transitional phase over the next 12 to 24 months.

Mr Martin brings to SolGold more than 20 years of technical, commercial and financial investment experience in the Australian resources industry.  He has a strong passion for exploration and considerable financial experience which the board believes is a key ingredient for junior exploration companies.

Mr Martin graduated from Lakehead University, located in the mining district of north-western Ontario, Canada.  After completing an Honours Bachelor of Science Degree (Geology major) in 1985, he moved to Australia and joined Delta Gold NL as an exploration geologist with a focus on gold and base metal projects.  In 1992, he entered the Australian investment industry as a mining analyst at Westpac Investment Management and has worked with major Australian financial institutions over the last 20 years.  Mr Martin was particularly successful during his tenure at IAG Asset Management from 2005 to 2008, delivering outstanding investment returns from his successful investment recommendations of major and junior mining stocks.  Over the last 3 years at Colonial First State Global Asset Management, he has specialised in junior mining and exploration companies with particular focus on identifying the exploration projects that enable junior companies to create exceptional shareholder value.

Mr Martin also has direct corporate experience in leading exploration ventures.  In 1995, he was a founding director of Austminex NL, a private exploration company which raised $8 million in an IPO in 2000.  Austminex went on to successfully complete a feasibility study on the Benambra VMS deposit in Victoria, but depressed metal prices hindered any further development.  Benambra (now called Stockman) is a core base metal project for Independence Gold (IGO - ASX).

Mr Martin said today "I am very much looking forward to the challenge of leading and growing SolGold together with its existing management team.  I believe the Company is uniquely situated in that there are few other exploration companies globally that have the following attributes:

Ø a strong mix of technical and commercial skills at Board level;

Ø a first class exploration team with hands-on experience exploring, discovering and defining major resource inventories (eg. Tujuh Bukit Cu-Au porphyry deposit in Indonesia); and

Ø the potential for a world class Cu-Au deposit at Cascabel, which can launch SolGold from a junior explorer into the ranks of a +$1billion junior mining company."

Mr Martin believes that with his diverse experience in the Australian resources industry, and a project such as Cascabel, with potential to host a world class copper deposit, he will be instrumental in delivering outstanding returns to SolGold shareholders.

Mr Mather said "the Company welcomes the appointment.  Mr Martin's investment in SolGold, exploration focus and strong knowledge and understanding of resource investment markets were very important factors in his selection."

Mr Martin already has a personal interest in 9,200,000 shares in the Company having invested $200,000 in the recent placement.  Under the terms of Mr Martin's contract there is a four (4) month probationary period, after which he (or his nominee) will be granted options to acquire ordinary shares in the Company as follows:

Ø 3 million exercisable at £0.14, vesting once the SOLG share price has traded at a minimum of £0.20 on a 30 day VWAP basis;

Ø 5 million exercisable at £0.28, vesting once the SOLG share price has traded at a minimum of £0.40 on a 30 day VWAP basis; and

Ø 8 million exercisable at £0.50, vesting once the SOLG share price has traded at a minimum of £0.80 on a 30 day VWAP basis.

SolGold is currently continuing its exploration efforts at the Cascabel copper gold porphyry project where channel sampling at the Alpala Prospect has recently returned highly encouraging gold and copper assays and confirmed the presence of a significant high-grade copper-gold porphyry system (refer market release of 1 May 2013).  3D magnetic modelling at Cascabel supports the presence of a copper and gold rich magnetic core zone at the apex of a deep regional intrusion feeding copper-gold rich solutions to Cascabel.  The magnetic core zone covers an area of 1,000m x 500m under a clay-silica-pyrite cap, south east of an outcropping rich copper-gold zone.  The extent of surface copper and gold mineralization, and accompanying clay, pyrite and silica cap rocks covers most of an area of 2km².

SolGold's Board and management team believe that Cascabel represents a unique opportunity for corporate and shareholder growth based on the fact that:

Ø it has the potential to host a billion tonne copper-gold deposit;

Ø it contains high grade copper and gold at surface;

Ø trenching has revealed a highly mineralised copper-gold stockwork system;

Ø it is supported at depth by 3D geophysics;

Ø it is logistically well situated close to ports, sealed highways and the capital with access to power and water at a low elevation;

Ø it is situated in a friendly environment;

Ø the Alpala prospect itself already covers an extensive area  -  over 2km²; and

Ø Cascabel has at least 4 other prospective targets in addition to Alpala.

SolGold is currently in discussions with a number of drilling companies with a view to awarding a contract in the next two weeks.

By order of the Board

Karl Schlobohm

Company Secretary

Contacts:

Mr Nicholas Mather                                                                                            Tel: [phone]

SolGold plc (Executive Director)

[e-mail] 

Mr Karl Schlobohm                                                                                              Tel: [phone]

SolGold plc (Company Secretary)

[e-mail]   

Mr Ewan Leggat / Katy Birkin                                                                            Tel: [phone]

SP Angel Corporate Finance LLP (Broker)

[e-mail]  

Mr Stephen Weir                                                                                                Tel: [phone]

RFC Ambrian Limited (Nominated Advisor)

[e-mail] 

Mr Dominic Barretto / Anna Legge                                                                                 Tel: [phone]

Yellow Jersey PR Limited (Financial PR)

[e-mail]  

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 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), the Florida/Ngella, and the Kuma license on Guadalcanal.

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 Rannes, 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.

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 17.5% 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.

 

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