ASX Listing Postponed to 2013

RNS Number : 3272T

SolGold PLC

12 December 2012

 

12 December 2012

Announcement to London Stock Exchange

SolGold plc

Postponement until Q1 2013 of the Listing Application for the Australian Securities Exchange

The Board of Directors of SolGold plc (AIM: SOLG) advises that the Company has decided to postpone its application to the Australian Securities Exchange (ASX) for admission to the Official List until late Q1, 2013. 

Withdrawal of the current offering will enable the Company to:

·     assess additional technical results from the Cascabel Project which are expected to be received over the
 next few weeks, based on the current field work and data processing activities. These results will be announced as available and are expected to enhance the definition of drill targets;

·     satisfy the timing requirements of several potential institutional investors identified during the course of
 the Company's road show; and

·     allow for the finalisation and implementation of proposed amendments to the earn-in agreement with
 Cornerstone Capital Resources, which have been the subject of ongoing discussions and are yet to be
 finalised. These amendments will enhance SolGold's tenure position during the early stages of the earn-in
 agreement.

The revised timing will also allow for the improved alignment of exploration work activities, permitting activities in the lead up to drilling expected to commence in Q2, 2013, and the local level implications of the Ecuadorian Presidential election to be held on February 17, 2013.

The current prospectus (dated 21 November 2012) will be withdrawn and re-lodged in early 2013.

Exploration activities are continuing at Cascabel and it is expected that updates of results will be released over the coming weeks.

By order of the Board

Karl Schlobohm

Company Secretary

Contacts:

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] / [e-mail] 

Mr Stephen Weir                                                                                                            Tel: [phone]

RFC Ambrian Limited (Nominated Advisor)

[e-mail]  

NOTES TO EDITORS

SolGold's exploration projects are located in northern Ecuador, Australia, and the Solomon Islands. In Australia, they comprise the Rannes, Mt Perry, Cracow West and Normanby Projects, all in southeast Queensland. In the Solomon Islands they comprise the Fauro Project (located on Fauro Island), and the Guadalcanal Joint Venture with Newmont Mining Corporation, and in Ecuador a JV with Cornerstone Capital Resources on the Cascabel gold-copper project.

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). The 2012 exploration program, including planned drilling to define new ore positions and grow the resource, is underway.

Exploration continues at Mt. Perry, Normanby and Cracow West.

In the Solomon Islands, the 2012 exploration program on the Fauro project has been delayed while a JV partner is sought to pursue drilling of gold-copper targets defined in the 2011 exploration program.  The 2012 Guadalcanal Joint Venture with NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) is now seeking expressions of interest for possible divestment.

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 16.3% 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 424,242,966 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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