Australian Assets Sold for $2.5 Million Cash
• Binding Sale and Purchase Agreement Executed with Aurenne Group Holdings Pty Ltd
• All Australian exploration assets are included in the sale
• $2.5 million cash to be received on completion
Sale Process Concludes
Southern Gold Ltd (Southern Gold) advises that the previously announced sale process (see ASX Release on 1 April 2019) has concluded. This process was managed by PCF Capital Group and involved several stages of bidder selection, due diligence and commercial negotiation.
Sydney based private gold mining company, Aurenne Group Holdings Pty Ltd via its subsidiary Aurenne Cannon Pty Ltd ACN 634 889 982 (“Aurenne”) was selected as the preferred bidder and has executed a binding agreement in regard to the sale and purchase of all of Southern Gold’s Australian exploration assets including the Bulong South, Glandore, and Cowarna gold projects. Bulong South includes the Cannon gold mine which is currently on care and maintenance.
Aurenne is a fully funded gold mining group who purchased 50% of the Kalpini Gold Project (“Kalpini”) in 2018. Kalpini is located approximately 65km north-east of Kalgoorlie in the Eastern Goldfields of Western Australia and mining at this project was successfully completed by Aurenne in May 2019.
Terms of the Agreement
Aurenne has agreed to pay $2.5 million in cash on completion for the assets. A 10% deposit has been paid, refundable if the conditions precedent are not satisfied or waived.
Conditions precedent for the transaction are Southern Gold shareholder approval (if required) and Ministerial consent for the transfer of the tenements. The tenements relevant to the transaction are appended.
Southern Gold was advised on the transaction by PCF Capital Group with legal advice provided by HopgoodGanim.
Southern Gold Managing Director, Mr. Simon Mitchell
“Southern Gold has successfully concluded a transaction to turn the Australian assets into cash. The $2.5 million is the equivalent of approximately 3c per Southern Gold share and takes our pro-forma cash balance after the recent $2.3m rights issue to over $5m post-completion. This frees up the company to concentrate on the South Korean story and our epithermal high-grade gold-silver discoveries that have been made over the last 12 months. We are uncovering some exceptional targets, including the recently announced ultra-high grade Bonanza and Thorn Zones at the Deokon Project, and with this repositioning and cash injection we are now able to get the drill rigs turning.”
To read the complete announcement please down load the pdf below: