Cash-in-bank doubles as further profits received from Cannon gold mine, WA
- Fifth profit distribution of $3 million received
- Total of $10.5 million now received-to-date from Cannon
- Southern Gold cash balance more than doubles to $5.5 million
- Further processing and next distribution in June 2017
$3 Million Profit Share Distribution Received
The Directors of gold miner and explorer, Southern Gold Ltd (‘Southern Gold’) are very pleased to advise the payment of the fifth 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 $6 million in profit distributions, or $3 million to Southern Gold as its 50% profit share. This takes total payments to Southern Gold from Cannon since December 2016, to $10.5 million.
Southern Gold has fully repaid all of its debt with a total of $3.7 million of payments being made in the last few months to various debt providers. As such, this latest $3 million distribution is fully banked, more than doubling the Company’s unaudited cash position to approximately $5.5 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 is currently scheduled to commence in June 2017. Around 35kt of ore is expected to be treated, recovering around 4,000oz gold. Subject to a successfully completed final mining phase, the next cash distribution to Southern Gold is therefore expected at the end of June or early July.
Southern Gold Managing Director, Mr Simon Mitchell:
“Our cash balance is building in a solid manner in parallel with our in-field activities, including drilling in several locations at once, finding new gold mineralisation and drill targets at several projects, and moving forward other projects with a potential for cash flow. We had anticipated 2017 would be a transformative year for Southern Gold financially, operationally and through exploration success and this is proving the case.”