Announcement

Non-Renounceable Rights Issue

17 June 2019

Non-Renounceable Rights Issue

  • 1 for 3 non-renounceable rights issue at an offer price of 11 cents per share to raise approximately $2.3m, before costs
  • Free attaching option for every 2 new shares issued
  • Fully underwritten by 4 major shareholders

Southern Gold Limited is pleased to announce a pro-rata, non-renounceable Rights Issue to all eligible shareholders to raise up to $2,294,174, before costs.

This Rights Issue has been launched to ensure the Company is well prepared for the next stage of its development and execute its Korean-focused strategy.

More specifically, the proceeds from this Rights Issue will be primarily directed to exploration drilling in South Korea where the Company has a high confidence in confirming several new precious metal deposit discoveries.

In addition, the funding will cover our near-term contributions to the 50/50 Joint Venture with London-listed Bluebird Merchant Ventures Ltd (BMV). The Joint Venture is targeting gold production over the coming year with Southern Gold’s share of development costs to be covered by the proceeds of the asset sale (principally the Cannon deposit) announced on 1 April 2019.

The Rights Issue entitlement applies to shareholders registered on 21 June 2019 on the basis of 1 new fully paid ordinary share for every 3 shares held by eligible shareholders, at an issue price of 11 cents per share, with a free attaching option for every 2 new shares issued. The free attached option has an exercise price of 18 cents per share, expiring 31 December 2021.

The Rights Issue is fully underwritten by four existing shareholders.

The issue price of $0.11 per share is a discount of 15% to the last traded price of $0.13 and a 12% discount to the volume weighted average market price of Southern Gold shares for the 5 trading days prior to this announcement.

To read the full announcement please download the pdf below:

Non-Renounceable Rights Issue