Issue of Equity

RNS Number : 9931F

Solomon Gold PLC

05 May 2011

 



5 May 2011

Announcement to London Stock Exchange

Issue of Equity

Solomon Gold plc (Solomon Gold or the Company) has issued the securities outlined below:

Remuneration Shares

The Company has issued a total of 913,287 ordinary shares of 1 penny each in the capital of the Company to key management, geological staff and contractors as part of their remuneration for their efforts in progressing the Company's various projects in the Solomon Islands and Queensland.

The shares were issued at 30 pence, and are subject to restrictions against trading for 12 months or a change of control of the Company.  Accordingly, no application for the shares to be admitted to AIM will be made until that time.

Incentive Options

The Company has issued a total of 5,324,000 Incentive Options to key management, geological staff and contractors.  The terms for the Incentive Options are identical to those for the options proposed to be issued to Directors, subject to approval by shareholders at the Company's AGM on 24 May 2011.  The options are exercisable at any time when the 30 day VWAP for the Company's share price exceeds 50 pence during the period from 12 months to 3 years from the date of issue.

Conversion of Options to Shares

The Company has issued a total of 1,222,000 ordinary shares of 1 penny each in the capital of the Company to a key management option holder, as a result of the exercise of their options.

An application for the shares' admission to AIM has been made, and the shares are expected to be admitted to trading on or around 11 May 2011.

The Company also notes the 30 April 2011 expiry of 78,000 employee options issued in 2009.

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The Company now has 283,907,811 fully paid ordinary shares and 6,624,000 options on issue.

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                                                                                                                   Tel: [phone]

Fairfax I.S. PLC (Broker)

[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

Solomon Gold Plc's original and core gold exploration projects are located on the Solomon Islands and are the major focus of the Company.  The discovery in September 2010 of extensive and rich gold mineralisation on Fauro Island, just south east of Bougainville 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 40Moz gold equivalent metal endowment.  The Company also holds a comprehensive and extensive tenement position on the main island of Guadalcanal where its JV partner, NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) and has claimed to have earned a 51% interest in the project by expending US$6million, and has elected to expend a further US$6million (total US$12million) to earn a further 19% to a total 70% by 1 April 2014.  The Guadalcanal Joint Venture has outlined high priority gold-copper porphyry targets at Chikora, Mbetilonga, and Kuma.

On Fauro the Company has outlined 6 main prospects showing coincident strong magnetic signatures and gold grades at surface.  A 10,000 metre drill program and induced polarisation survey is testing these targets in 2011.

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 22km long prospective zone in a 200km long trend on the eastern edge of Queensland's Bowen Basin in the same geological setting as Newcrest's 100,000 ounce per year Cracow Gold Mine.  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 2 Moz.  To date a 404,000 ounce gold equivalent resource has been defined at the Crunchie and Kauffmans Prospect. The company is currently drill testing Homestead, Shilo, Double Scoop and Cracklin Rosie targets with a view to defining additional resources.  The Company is conducting 24,000 metres of drilling at Rannes testing these targets in 2011.

At Mt Perry, the Company is investigating an area of approximately 1,500km² 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 significant vested interests in the Company holding approximately 17.5% of its issued share capital.

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

 

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