Results of Open Offer

RNS Number : 7001J

SolGold PLC

09 April 2015

 



9 April, 2015

SolGold plc

("SolGold" or the "Company")

Result of Open Offer, Use of Proceeds, Total Voting Rights and Related Party and Directors' Shareholdings

Open Offer

The Board of SolGold (AIM code: SOLG) wishes to advise that a total of 74,708,041 Open Offer Shares out of a total 114,290,838 available, have been validly applied for by Qualifying Shareholders under the Open Offer.

40,646,131 Open Offer Shares were validly applied for under Open Offer Entitlements. A further 34,061,910 Excess Shares were validly applied for under the Excess Application Facility and allocated in accordance with the Excess Open Offer Formula.

The Open Offer will therefore result in the issue of a total of 74,708,041 Open Offer Shares (representing 9.82 per cent of the Enlarged Share Capital), for gross proceeds of approximately £2.24 million (net proceeds of approximately £2.1 million or A$4.06 million).

Application has been made to the London Stock Exchange for the Open Offer Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings will commence tomorrow morning, 10 April 2015, at 8.00 a.m.

Use of Proceeds

It is anticipated that the net proceeds of the Open Offer of approximately £2.1 million (approximately A$4.06 million) will be utilised by the Company as follows:

Use of Proceeds	Sterling (million)	AUD (million)
SolGold general and administrative costs	0.466	0.90
Ecuador Exploration & local corporate costs	1.608	3.11
Australia/Solomon Islands Tenement Management	0.026	0.05
Net Open Offer Proceeds	2.1	4.06

Total Voting Rights

Immediately following Admission, SolGold's issued share capital will consist of 760,453,071 ordinary shares of 1p each with voting rights. The rights attaching to the Open Offer Shares, including as to voting, are the same as those of the Existing Ordinary Shares. The Company does not hold any ordinary shares in treasury. Therefore, the total number of voting rights in the Company is 760,453,071 and this figure may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Related Party and Directors' Shareholdings

The shareholdings of the Related Parties and Directors of SolGold in the Company, prior to Admission are, and immediately following Admission will be, as follows:

Related Party/Director	Number of Existing Ordinary Shares	Percentage of Existing Ordinary Shares	Number of Open Offer Shares validly applied for under Open Offer Entitlement	Number of Excess Shares validly applied for	Number of Ordinary Shares held following Admission	Percentage of enlarged share capital held following Admission
Tenstar Trading Limited	84,664,411	12.2	14,110,735	10,889,265	109,664,411	14.4
Nicholas Mather	65,519,570	9.6	10,919,9281	9,080,072	85,519,570	11.2
DGR Global Limited	54,517,440	8.0	9,086,2402	10,913,760	74,517,440	9.8
Alan Martin	9,288,324	1.4	-	-	9,288,324	1.2
Dr Robert Weinberg	2,672,986	0.4	445,498 3	-	3,118,484	0.4
Brian Moller	2,645,950	0.4	440,992	-	3,086,942	0.4
John Bovard	3,307,553	0.5	517,326 4	33,9334	3,858,812	0.5

¹                      Including conversion of A$37,500 of Director's fees into 646,552 Open Offer Shares.

²                      Including conversion of A$300,000 loan into 5,172,414 Open Offer Shares.

³                      Including conversion of A$16,667 (rounded) of Director's fees into 287,366Open Offer Shares.

⁴                      Including conversion of A$31,973 (rounded) of Director's fees into 551,259 Open Offer Shares.

All capitalised terms in this announcement have the same meaning as those in the Circular posted to Shareholders on 18 March 2015.

Contacts:

Mr Alan Martin

SolGold Plc (CEO and Managing Director)                                                    Tel: [phone]

[e-mail]

Mr Nicholas Mather                                                                                         Tel: [phone]

SolGold Plc (Executive Director)                                                                            [phone]

[e-mail] 

Mr Karl Schlobohm                                                                                         Tel: [phone]

SolGold Plc (Company Secretary)

[e-mail]  

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

SP Angel Corporate Finance LLP (NOMAD and Broker)

[e-mail]  

Richard Greenfield/ Alexandra Carse                                                         Tel: [phone]

GMP Securities Europe LLP (Joint Broker)

[e-mail]

Mr Dominic Barretto / Ms 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 consist of a joint venture with Cornerstone Capital Resources Inc. 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. In the Solomon Islands they comprise the Fauro Project (located on Fauro Island), and the Lower Koloula, Malukuna and Kuma licenses, which are located on Guadalcanal. 

The Cascabel copper-gold project is located approximately 180 km by sealed road north of Ecuador's capital, Quito, 20 km south of the Colombian border, and 75 km inland from the coastal city of San Lorenzo. 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 Rannes project is currently under review.

In the Solomon Islands, a soil geochemical survey and 3D modelling of magnetic data has been approved at Kuma.

SolGold's objective is to create substantial shareholder value by discovering and defining world-class copper-gold deposits.

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 14% of its issued share capital.

SolGold is based in Brisbane, Queensland, Australia.  The Company listed on London's AIM Market in 2006, under the AIM code 'SOLG' and following Admission will have a total of 760,453,071 fully paid ordinary shares, 12,820,000 options exercisable at 50p, 12,730,000 options exercisable at 28p and 9,730,000 options exercisable at 14p.

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

 

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