Capital Raising of AUD3 Million

RNS Number : 8039N

SolGold PLC

03 October 2012

 

                                                                                                                           3 October 2012

SolGold Plc

("SolGold" or the "Company")

Announcement to London Stock Exchange

SolGold Placement 55.5 Million Shares at £0.035 to Raise AUD3Million

The Board of SolGold Plc ("SolGold" or "Company"; AIM code: SOLG) is pleased to advise that the Company has entered agreements for a placing of 55,555,556 shares at £0.035 per share for gross proceeds of AUD3million with institutional and private investors.  The raising was underwritten by Mather Investments (Qld) Pty Ltd, an entity associated with SolGold Executive Director, Nicholas Mather.  The shares are expected to be admitted to trading on AIM on Monday 8 October 2012.

The Company's management and a number of existing shareholders supported the placement.  The Company now has a total of 402,270,823 fully-paid ordinary shares 1,070 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 intends to use the funds raised to continue to progress its exploration and project development efforts across its portfolio of projects in the Solomon Islands, Ecuador and Queensland, Australia.

Director Interests

The table below sets out each director's interests in the Ordinary Shares of the Company before and after the current share placement.

Company Director	Pre Placement Shareholding	% Total	Placement Shares Issued	Shareholding Following Placement	% Total
Cameron Wenck	4,510,937	1.3%	925,926	5,436,863	1.4%
Malcolm Norris	1,338,964	0.4%	-	1,338,964	0.3%
Nicholas Mather	45,596,319	13.2%	8,561,111	54,157,430	13.5%
Brian Moller	1,366,350	0.4%	370,370	1,736,720	0.4%
Robert Weinberg	1,154,954	0.3%	231,481	1,386,435	0.3%
John Bovard	1,258,032	0.4%	925,926	2,183,958	0.5%
Total Company	346,715,267		55,555,556	402,270,823

By order of the Board

Karl Schlobohm

Company Secretary

Contacts:

Mr Karl Schlobohm                                                                           Tel: [phone]

Solomon Gold Plc (Company Secretary)

[e-mail]

Mr Ewan Leggat/Miss Katy Birkin                                                    Tel: [phone]

Fairfax I.S. PLC (Broker)

[e-mail]/[e-mail]

Mr Stephen Weir                                                                               Tel: [phone]

RFC Corporate Finance (Nominated Advisor)

[e-mail]

Mr Dominic Barretto                                                                         Tel: [phone]

Yellow Jersey PR (PR & IR)

[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 17.2% 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 402,270,823 fully-paid ordinary shares, 1,070 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.

 

END

 

 

IOEBKNDPOBDKAKK