Successful Placement

RNS Number : 0430O

SolGold PLC

16 September 2013

 



16 September 2013

SolGold Plc

("SolGold" or the "Company")

SolGold Completes Successful Placement to Fund On-going Phase 1 Drilling Program at Cascabel Project

The Board of SolGold (AIM code: SOLG) is pleased to advise of the completion of a capital raising to continue the funding of the Company's highly prospective Cascabel copper-gold project in Ecuador.

The placement comprises the issue of 9,840,967 shares at a price of 7.5p each to raise gross proceeds of AUD1.27 million from Australian private investors.

Commenting on the fund raising, CEO Alan Martin states: "It is pleasing to see the strong level of interest in the Company.  We are in the early stages of the Phase One drilling program at the Cascabel Project, having completed Hole 1 recently and with the rig now moving on to Hole 2.  Given the highly prospective nature of the Alpala prospect, I look forward to providing shareholders with on-going news flow over the next 3 months."

Funds from the placement will go towards the Phase 1 drilling program including the on- site costs and the associated technical and laboratory work, as well as for general corporate and working capital purposes.

The shares are scheduled to be allotted on Friday 20 September, and an application to have the shares admitted onto AIM by Monday 23 September 2013 will be made shortly.

SolGold's Interests in Ecuador

SolGold currently holds a 50% interest, and can earn up to an 85% interest, in Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean registered company, which holds 100% of the Cascabel concession in northern Ecuador.  Cornerstone Capital Resources Inc ("Cornerstone") currently holds the other 50% of ENSA.  Cornerstone has been operating in Ecuador for six years and employs highly experienced Ecuadorian geologists to carry out exploration and related administrative functions for the Cascabel Project.  SolGold also employs several key exploration management personnel on the project.

Cascabel Project

The Cascabel project is located in north-western Ecuador in an under explored northern section of the richly endowed Andean Copper Belt.  World class deposits located within this belt include the 982 million tonnes at 0.89% Cu Junin copper project located some 60km to the southwest of Cascabel, the 4.2 billion tonne at 0.35% Cu Cobre Panama deposits located to the north in Panama, and the 905 million tonnes at 0.92 g/t Au La Colosa porphyry deposit located to the north in Colombia, containing 26 million ozs of gold in similar geological environments.

The Alpala Prospect exhibits surface mineralisation and alteration patterns indicative of porphyry copper gold systems and has a similar footprint to large porphyry systems around the world.

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 consist of a JV 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 and Kuma licenses, both of which are located on Guadalcanal. 

The Cascabel copper-gold project is located approximately 180 km by sealed 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 JV partner is being sought for the Fauro project to pursue drilling of gold-copper targets defined in the 2011 exploration program. 

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 (AIM) in 2006, under the AIM code 'SOLG' and currently has a total of 554,054,342 fully-paid ordinary shares, 18,788,000 options exercisable at 50p, 7,750,000 options exercisable at 28p, 4,750,000 options exercisable at 14p, and 3,000,000 options exercisable at 6p on issue.

 

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