COST REDUCTIONS & OPTIMISATIONS DELIVER IMPROVED FINANCIAL OUTCOMES FOR CANNON GOLD PROJECT, WA
Oversubscribed Private Placement raises $1.05 million
ASX Code: SAU
Issued Shares: 422.6M To be issued: 105M
Shares on completion: 523.1M
ABN: 30 107 424 519
Directors
Greg Boulton AM Simon Mitchell Michael Billing David Turvey
Top Shareholders pre Raising
Silver Lake Res. Ltd 10.24% G B Branch 5.56%
JP Morgan Nominees 4.32% G Boulton Pty Ltd 2.58%
Head Office
229 Greenhill Road
Dulwich SA 5065
Telephone: (08) 8368 8888
Facsimile: (08) 8431 5619 [email protected]
www.southerngold.com.au
Private placement of 105 million shares at $0.01/share with sophisticated investors raises $1.05 million (before costs)
The offer was oversubscribed and well supported by both new
investors and significant current shareholders
No further capital raising anticipated as cash flow from the Cannon Gold Resource currently scheduled during the year after mining commencement in 2015Q2
The Directors of Southern Gold Ltd ("Southern Gold", ASX Code "SAU") are pleased to announce the successful completion of a $1.05 million capital raising. Southern Gold will issue 105 million shares at $0.01/share to sophisticated investors. This has been completed within Southern Gold's placement capacity under listing rule 7.1 and 7.1A. A notice pursuant to 708A(5) of the
Corporations Act will be posted on ASX (often referred to as "cleansing notice").
Post placement Southern Gold's share capital will expand to 523.1 million shares.
The funds raised will be deployed as follows:
Drilling at the Bulong project, including further drilling at Southern Gold's flagship development of the Cannon Gold Resource 30km east of Kalgoorlie, WA;
Commencement of first pass exploration at the Cowarna Project, also in the
Kalgoorlie district;
Regulatory and tenement maintenance costs; and
Working capital.
With this capital raising completed, all of Southern Gold's near term capital requirements can be met and allows the company to reach positive cash flow from the Cannon Gold Resource by the end of the year.
Southern Gold is about to enter an exciting phase with significant news flow expected in the near term including an update on the optimised pit design and revised economics of the Cannon Gold Resource and subsequent commencement of mining expected in 2015Q2.
The Managing Director, Simon Mitchell, commented: "it is pleasing to complete this capital raising oversubscribed and well supported by significant current shareholders as well some new sophisticated investors. This raising will underpin the company as it transitions into a junior gold producer. With a valuable Kalgoorlie-centred ground positon with exciting potential, both near mine brownfield targets and new tier 1 exploration targets, Southern Gold will be a junior company to watch."
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