$1m Capital Raising Completed
Private placement to strategic investors completed with the
issuance of 5,882,352 shares at 17c per share.
Placement pricing represents a 6.7% discount to the 20‐day
VWAP of 18.2c and raised $1,000,000 before costs.
Funding will complete the Gubong and/or Kochang Gold Mine
feasibility study and maiden JORC resource at Weolyu.
The Directors of Australian gold company Southern Gold Ltd (“Southern Gold”) advise
the successful completion of a $1 million capital raising. Southern Gold will issue
5,882,352 shares at 17c to sophisticated investors. This placement has been
completed within Southern Gold’s placement capacity under listing rule 7.1 for
1,614,965 shares and 7.1A for 4,267,387 shares. A notice pursuant to 708A(5) of the
Corporations Act, often referred to as a “cleansing notice”, will be posted on ASX
Post placement Southern Gold’s share capital will expand to approximately 55.7
Funding from this placement will be principally deployed as follows:
Completion of feasibility study for the re‐start of mine operations at Gubong
and/or Kochang Gold Mines, South Korea; and
Further drilling and maiden JORC resource definition at the Weolyu gold‐silver
project, South Korea.
Southern Gold Managing Directors Comment
Mr Simon Mitchell “It has been over 3 and a half years since Southern Gold raised
funding in the public market. Southern Gold aims to keep the company’s share
capital as tight as possible, releasing value from our assets when we can and building
value incrementally through smart acquisitions and good exploration practice.
Looking ahead there is much value to be released for a sub $10 million market‐cap
company, including the realisation of cash from our Australian assets.
Given the prevailing share price, difficult share market conditions and the company’s
strong fundamentals we have kept this funding round to a minimum. The capital
raised will underpin Southern Gold going into 2019 where we are looking to make
great strides toward gold production with Bluebird Merchant Ventures joint
development of Gubong and Kochang gold mines and the exploration of some very
exciting epithermal gold‐silver targets such as Weolyu where Southern Gold holds
To read the complete announcement please download the pdf below: