$1.75 million funding put in place
Australian gold company Southern Gold Ltd (“Southern Gold”, ASX ticker SAU) is pleased to advise that it has executed a new funding round of $1.75 million to several sophisticated investors.
The share placement has been made to several sophisticated investors with 6,666,666 shares being issued at the placement price of $0.15 per share. This raised $1 million and was not a brokered placement.
Because the company is expecting to monetise the Cannon mine over the next 12 to 15 months and in the interests of keeping the equity component of this funding round to a minimum, the Directors sought to put in place a loan component.
The terms of this loan are as follows:
If the call options were exercised, the cost of the subscription would cover the face value of the loan ($0.75 million) however the expectation is that the loan will be repaid within 12-15 months.
Southern Gold Managing Director, Mr. Simon Mitchell
“This funding round sets up Southern Gold very well for 2019. With monetisation of the Cannon asset expected in the near term this funding will ensure the company can bridge to value-release from the mine and establish a strong fiscal position for the foreseeable future.
In addition, I continue to work on several other corporate initiatives that will help lift the profile and funding depth of the company and enable it to move into the next stage of its development. The company has some incredibly exciting drill targets in South Korea, literally walk-up targets where high grade gold and silver has been identified on surface and the mineral systems have in some cases never been drilled. It doesn’t get much better than that as an explorer and I think 2019 will be an incredibly exciting year.”