Phase 3 Drilling Update and Update on Subscription

RNS Number : 5326I

Sula Iron & Gold PLC

20 June 2017

 

SULA IRON & GOLD PLC

("Sula" or the "Company")

Phase 3 Drilling Update and Update on Subscription

Phase 3 Drilling Update

Sula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to report a smooth ramp up into the current 5,000m drill programme at Sula's Ferensola gold project, with both rigs currently drilling day and night shifts at Sanama Hill. The first hole drilled, FDD025, on Sanama Hill is complete and is being logged. Two further holes on Sanama Hill are close to completion (FDD026 & FDD027). In due course one of the two drill rigs will be transferred to TZ4, the Southern Target, to commence a targeted programme there.

As previously stated the focus of this Phase 3 drilling programme is:

·    to infill and extend the areas of known high grade mineralisation at Sanama Hill, including the thick high-grade intersection in FDD024 which reported 3.65g/t over 21m true width, including a very high-grade core of 15.9g/t over 3.2m;

·    to improve the confidence in the geological interpretation and support a more accurate determination of the contained gold at Sanama Hill;

·    to further outline the potential of TZ4, the Southern Target, where the three holes drilled have all returned gold mineralisation, including 5.2g/t over 1.22m, from FDD021; and

·     additionally, Sula may consider a small amount of scout drilling on one or more of the 17 other gold targets identified by Tect Consulting in their recent structural geology analysis and review.

Subscription Update

Sula is also pleased to confirm that, further to the Company's announcement of 16 June 2017 of its intention to raise £0.4 million via a subscription through the conditional issue of 160,000,000 new ordinary shares at 0.25p, the Company has to date received £340,000 of the £400,000 committed pursuant to the Subscription, with the balance of £60,000 contracted and expected to be received by the Company in the coming days ("Balance").

Accordingly, application will be made for 160,000,000 ordinary shares of 0.1 pence each in the Company ("Ordinary Shares") to be admitted to trading on AIM, with admission expected to occur on or around 26 June 2017 ("Admission"), subject to receipt by 23 June 2017 of the Balance. The Subscription Shares will be credited as fully paid and will rank pari passu with the Company's existing Ordinary Shares. Following Admission, the total number of voting rights in the Company will be 2,427,120,672 Ordinary Shares and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules. Unless otherwise stated, defined terms are set out in the Subscription to raise £0.4 million announcement issued on 15 June 2017.

Roger Murphy Sula CEO commented:

"I am delighted to be drilling again and to have made such a smooth start to this Phase 3 programme. I am pleased to confirm that the £340,000 of the Proceeds received to date fully funds this 5,000m drill programme and would like to thank the investors for their belief in our project. We look forward to providing further updates on the programme and the assay results from it as news becomes available"

For further information, please contact:

Sula Iron & Gold plc
Roger Murphy (CEO)	[phone]
WH Ireland Limited (Nominated Adviser and Broker) Paul Shackleton / James Bavister	[phone]
VSA Capital Limited (Broker)
Andrew Raca	[phone]
Ongeza Mining (Financial and Technical Adviser)
Iain Macpherson / Ilja Graulich	[phone]

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

 

END

 

 

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