Successful UK Placement

RNS Number : 2946O

SolGold PLC

18 September 2013

 



18 September 2013

SolGold Plc

("SolGold" or the "Company")

Announcement to London Stock Exchange

SolGold Placement 40 Million Shares at GBP0.075 to Raise GBP3.0 Million

Oversubscribed

Further to the announcement made on 16 September 2013, the Board of SolGold Plc ("SolGold" or "Company"; AIM code: SOLG) is pleased to advise that the Company has entered into additional agreements for a placing of 40,000,000 new ordinary shares at GBP0.075 per share for gross proceeds of GBP3.0 million with UK institutional and other investors.  The raising was managed and completed by SP Angel Corporate Finance LLP and was significantly oversubscribed.  The raising was also supported by all of the Company's Directors.  An updated statement of holdings for the Directors will be made following the allotment and admission of the shares.

Commenting on the fund raising, CEO Alan Martin states: "I am very pleased to see the strong level of interest in the Company and the placement oversubscribed.  This additional fund raising means that we will have the flexibility to enable a smooth extension of the current Phase 1 into a Phase 2 drilling program.  SolGold is in the early stages of its Phase 1 drilling program at Cascabel, a truly exciting copper-gold porphyry project in Ecuador.  The Company recently completed Hole 1 and I anticipate being able to provide an update on the status of Hole 2 very soon.  I look forward to providing shareholders with on-going news flow over the next 3 months."

The Company will further update shareholders on drilling results, drill imagery and copper-gold assays as soon as possible.

The shares are scheduled to be allotted on Friday 20 September 2013, and an application to have the shares admitted onto AIM by Tuesday 24 September 2013 will be made shortly.

This raising is in addition to the Australian based placement announced 16 September 2013.

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.

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 after the allotment and admission of the placement shares from 16 and 18 September 2013, will have currently has a total of 605,651,907 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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