Issue and Cancellation of Equities

RNS Number : 2928J

SolGold PLC

15 July 2013

 



15 July 2013

SolGold Plc

("SolGold" or the "Company")

Issue of Equity

Cancellation of Securities

The Board of SolGold plc (SolGold or the Company) wishes to advise that it has today issued the securities outlined below:

Remuneration Shares Issued

The Company has issued a total of 1,110,000 ordinary shares of 1 penny each in the capital of the Company pursuant to the achievement of certain milestones under the Convertible Redeemable Preference Shares ("CRPS") previously awarded to executives of the Company, and approved by shareholders in the Company's AGM of 28 June 2012.

The milestones achieved were predominantly focused on the Company securing rights to participate in the Cascabel copper-gold porphyry project in Ecuador via a joint venture arrangement with Cornerstone Capital Resources Inc.

The shares were issued at 3.8 pence each. 

Incentive Options Issued

The Company today also awarded the following employment related incentive options to its Chief Geologist Mr Bruce Rohrlach, as follows:

Ø 1.25 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 2.25 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 4 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.

These exercise hurdles and other material terms for these options have been aligned with those to be awarded to new SolGold CEO Alan Martin as outlined in the Company's RNS of 10 May 2013.

The Company has also cancelled securities as follows:

CRPS Cancelled

As a result of the two issues outlined above, and also by virtue of the expiration of certain time-based milestones and the cessation of the employment of the previous CEO and Business Support Manager 8,090 CRPS' have effectively been cancelled.

The Company still has 1,500 CRPS' on issue.

Incentive Options Cancelled

The Company also notes the cancellation of employment related options due to the cessation of employment as follows:

750,000 options exercisable at 14p;

750,000 options exercisable at 28p; and

2,684,000 options exercisable at 50p.

*******************

As a result of the issues and cancellations outlined above, the Company now has a total of 553,354,342 fully-paid ordinary shares, 1,500 Convertible Redeemable Preference Shares, 6,788,000 options exercisable at 50p, 500,000 options exercisable at 28p and 500,000 options exercisable at 14p on issue.

By order of the Board

Karl Schlobohm

Company Secretary

Contacts:

Mr Alan Martin

Solgold Plc (Chief Executive Officer)                                                               Tel: [phone]

[e-mail]

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 a JV with Cornerstone Capital Resources on the Cascabel copper-gold 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 copper-gold 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).

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 in the process of being 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 15.1% 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 553,354,342 fully-paid ordinary shares, 1,500 Convertible Redeemable Preference Shares, 6,788,000 options exercisable at 50p, 500,000 options exercisable at 28p and 500,000 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

 

 

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