Cannon Gold Mine Sixth Profit Distribution of $1m

03 July 2017

Cash continues to roll in from Cannon gold mine, WA

  • Sixth profit distribution of $1 million received
  • Total of $11.5 million now received-to-date from Cannon
  • Processing completed on 30 June and final distribution expected in August 2017

$1 Million Profit Share Distribution Received

The Directors of gold miner and explorer, Southern Gold Ltd (‘Southern Gold’) are pleased to advise the payment of the sixth profit share distribution from the Company’s Cannon gold mine southeast of Kalgoorlie in Western Australia’s Eastern Goldfields. The Cannon gold mine operations committee resolved to pay $2 million in profit distributions, or $1 million to Southern Gold as its 50% profit share. This takes total payments to Southern Gold from Cannon since December 2016, to $11.5 million.

Southern Gold has fully repaid all of its debt and this latest $1 million distribution is fully banked, taking the Company’s unaudited cash position to approximately $5.3 million.

Southern Gold has significant accumulated tax losses it can use to offset any profits so no tax is expected to be payable on these distributions.

Status of Processing Campaigns and Future Cash Distributions

The ninth processing campaign of Cannon ore was completed on 30 June 2017 and the results of this campaign will be reported shortly once final reconciled figures are available. The final cash distribution to Southern Gold from Cannon open pit operations is therefore anticipated to be in August once all final accounts have been settled during the course of July.