Placement to Colin Patterson, CEO of Bluebird Merchant Ventures
- Placement completed to entity controlled by Colin Patterson, CEO of Bluebird Merchant Ventures Ltd (BMV), under the Share Subscription, Farm In and Joint Venture Agreement – Gubong Project in place of BMV
- Placement of $250,000 at .386 per Southern Gold share, a 35% premium at the time of original agreement execution with BMV in March 2017
Gold miner and explorer, Southern Gold Ltd (‘Southern Gold’) is very pleased to advise the completion of a placement to an entity controlled by Mr Colin Patterson, CEO of Bluebird Merchant Ventures Ltd (‘Bluebird’).The placement comprised 647,668 shares in Southern Gold priced at .386 per share for total proceeds of $250,000.
This placement has been made in lieu of the placement to Bluebird Merchant Ventures Ltd under the Share Subscription, Farm In and Joint Venture Agreement - Gubong Project executed earlier this year (see ASX Release 27 March 2017).Pricing for the placement was set at the time the agreement was executed as a 35% premium to the 20 day volume weighted average price.
Gubong is a major historical gold mine in South Korea that Bluebird has agreed to farm into.Approval to access the underground mine was granted recently by Korean regulatory authorities (see ASX Release 21 June 2017).
Taking the placement now enables Mr Patterson to participate in the recently announced 3c per Southern Gold share special unfranked dividend that can be taken as cash, shares or a combination of both (see ASX Release 6 June 2017).
Southern Gold Managing Director, Mr Simon Mitchell:
“Having Colin invest in Southern Gold is a great vote of confidence in the mutual future of Southern Gold and Bluebird, particularly when it comes to the advancement of the Gubong project.Of course Colin is not only directly supporting Bluebird by completing this placement but also taking a position in Southern that provides exposure to our Kalgoorlie operations, our other projects within South Korea and of course the 3c per share dividend that was recently announced.”