Issue of Equity

RNS Number : 2330I

SolGold PLC

23 July 2012

 



                               23 July 2012

SolGold Plc

("SolGold" or the "Company")

Announcement to London Stock Exchange

Issue of Equity

SolGold plc ("SolGold" or the "Company") today issued a total of 1,070 Convertible Redeemable Preference Shares (CRPS) and 2,500,000 options over ordinary shares in the Company to certain executive employees subsequent to the approvals granted by shareholders at the Company's AGM last month.  Details of these securities were contained in the AGM Meeting Materials published as a market release on 31 May 2012.

In broad terms the options issued today are exercisable during the period from 12 months to 3 years from the date of issue, with 50% exercisable at a strike price of 14p each, and 50% exercisable at a strike price of 28p each.

The CRPS were issued pursuant to the Employee Share Plan approved at the Company's AGM last month.  Each CRPS will entitle the executive, upon the achievement of certain performance criteria, to convert the CRPS into one ordinary share, and such executives will in addition be entitled to subscribe for further ordinary shares, granting the employees, in total (following conversion and exercise of the subscription rights) 1,000 ordinary shares per converted CRPS.

The performance criteria in each instance have been structured to focus on performance in areas including project operational deliverables, share price and corporate performance, and are aligned with delivering shareholder growth.

The Company also notes the cancellation of 1,000,000 options previously issued to Nicholas Mather whilst he was Managing Director.  Mr Mather continues to have an interest in 1,200,000 options which are exercisable at 50p.

The Company now has a total of 346,715,267 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.  If all performance criteria under the CRPS' are met and convert to ordinary shares, the Company will have 347,785,267 ordinary shares 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/Miss Katy Birkin                                                    Tel: [phone]

Fairfax I.S. PLC (Broker)

[e-mail]/[e-mail]

Mr Stephen Weir                                                                               Tel: [phone]

RFC Ambrian Limited (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, Queensland, Australia, and the Solomon Islands. In Australia, they comprise the Rannes, Mt. Perry, Cracow West and Normanby Projects.  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 April 2012, SolGold and Cornerstone Capital Resources Inc. announced that they had signed a binding Letter of Intent 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 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 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 exploration program with NVL Solomon Islands Limited (a subsidiary of NYSE-listed Newmont Mining Corporation) is underway and includes drilling on highly prospective gold-copper porphyry targets.

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 in Australasia and Melanesia, investment, finance and law.  Board and Management have significantly vested interests in the Company, holding approximately 17.8% 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 346,715,267 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

 

 

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