Southern Gold Limited (ASX: SAU) announced today that the company has received a binding subscription commitment from senior and institutional investors. The company will issue 85,000,000 new shares at a stock price of A$0.12 and raise A$10.2 million. For every two shares subscribed, you will get one option with an exercise price of 18 cents and a validity period of two years. This time the additional issuance is oversubscribed, and a lot of subscription demand comes from Asia.
This additional issuance will be completed in two parts:
The company will make use of the financing capabilities specified in ASX Listing Rules 7.1 and 7.1A for additional issuance.
A total of 31,680,002 new shares will be issued at a unit price of A$0.12 for a total of A$3.8 million;
After obtaining shareholders’ approval, the company will issue 53,319,998 new shares at a price of A$0.12 and raise A$6.4 million without any expenses.
The accompanying 42,500,000 share options also require shareholder approval.
This additional issuance was strongly supported by strategic investor Crescat Capital LLC, a capital management company based in Denver, USA.
In addition, the two major shareholders of a number of Southern Gold also actively supported the financing. They raised AUD 1.7 million and AUD 1 million respectively.
This additional issuance is an important step for Southern Gold to become an outstanding gold-silver prospector in South Korea. The company will continue to expand its project scale and drilling activities. These funds will be used for:
Ensure that there is enough cash in the next two years to perform multiple drilling activities on multiple targets in our growing gold and silver projects;
Introduced several new institutional investors in the offshore markets of Australia and North America.
Simon Mitchell, the managing director of Southern Gold, said:
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I am very pleased to announce the result of this A$10 million financing, which represents our success in the capital market. Southern Gold has now attracted investment from many people, all of whom are tech-savvy and understand the potential of the project. This funding will help the company focus on finding the next big discovery and create value for our shareholders. "
"Given the rising global risks, the very high market volatility, and the current investor support for gold, now is a good time to include high-quality institutional investors in Southern Gold. I especially welcome North American institution Crescat Capital LLC (under the guidance of Dr. Quinton Hennigh) Next), I believe this is our strong endorsement of South Korea’s strategy.
"
Southern Gold Ltd (Southern Gold Ltd) is a gold exploration company listed on the Australian Securities Exchange (ASX code "SAU"). South Korea owns a large number of high-grade gold projects in South Korea. These projects are mainly shallow hydrothermal gold and silver exploration targets in the southwest of the country. With the support of a first-class technical team including the famous geologist Douglas Kirwin (Douglas Kirwin), the goal of Southern Gold is to find world-class shallow hydrothermal gold in an area that has almost no modern exploration. Silver deposits. Southern Gold also holds a 50% stake in a joint venture company operated by a London-listed joint venture partner that hopes to start gold production in the Kochang and Gubong projects. Southern Gold is selling or reorganizing this joint venture project.
Shares of Southern Gold rose 3.7% to 0.14 Australian cents today, with a market value of 17.97 million Australian dollars.
