29 August 2016
The Board of Directors of international resource company creator, DGR Global Limited (the Company; ASX: DGR), is pleased to provide the following update with regard to the Company�s interest in LSE(AIM)-listed SolGold Plc (SolGold).
On Friday 26 August 2016 in London, SolGold announced the closure of the first stage of a significant capital raising program, in this instance led by Maxit Capital LP (Maxit First Tranche). Under the Maxit First Tranche, SolGold closed on agreements to issue new Ordinary Shares covering:
a) the raising of USD15,709,381 in cash proceeds from Maxit and clients of Maxit;
b) the conversion to equity of amounts owed to various parties, primarily SolGold�s management and project employees;
c) the conversion to equity by Maxit (at their election) of their fee due under the Maxit First Tranche raising arrangements; and
d) the conversion to equity of USD4,389,000 (AUD5,700,000) of the debt funding provided by DGR Global Limited (�DGR Global�) in accordance with the terms of the loan arrangements announced to the market on 1 July 2016.
SolGold intends to use the Maxit First Tranche proceeds to continue to fund the exploration of its flagship Cascabel Copper Gold Porphyry Project in Northern Ecuador, for general working capital purposes and ongoing corporate costs. SolGold intends to contract additional drill rigs to expand exploration on the overall Cascabel concession whilst also continuing to work towards the delivery of a maiden resource at the Alpala Prospect, the only one of the fourteen separately identified targets to be drill tested to date.
Commenting on the SolGold capital raising CEO Nick Mather said:
�We are very pleased to have Maxit and a number of its clients as shareholders, and now have the funds available to enable aggressive drill testing of the seven priority targets in the Cascabel cluster, and the definition of an expanded and larger maiden resource at Alpala.�