SolGold advances on placement of 119.8m shares

AIM-listed precious metal mining company SolGold has agreed to place 119.8m shares at 0.015 pounds per share to raise gross proceeds of AUD2.6m with institutional and private investors.

AIM-listed precious metal mining company SolGold has agreed to place 119.8m shares at 0.015 pounds per share to raise gross proceeds of AUD2.6m with institutional and private investors.

The shares are expected to be admitted to trading on AIM on April 8th 2013.

The company now has a total of 544m fully-paid ordinary shares, 10,700 convertible redeemable preference shares, 9.5m options exercisable at 50p, 1.3m options exercisable at 28p and 1.3m options exercisable at 14p on issue.

SolGold said that it intends to use the majority of funds raised to continue to progress its exploration and drilling at Cascabel. It said that a smaller proportion of funds would also be used to continue exploration at the Rannes project in Queensland, Australia.

The company said that there had been "highly encouraging" gold and copper assays from all follow-up trenching at its Alpala Prospect within the Cascabel Project in Ecuador, with the results significantly expanding the area of mapped and mineralised porphyry gold-copper stockwork veining in the Alpala region.

Nick Mather, Executive Director of SolGold, said: "The placing received good institutional support and the proceeds will enable us to continue exploration and drilling at Cascabel, as well as further exploration at Rannes."

He added: "Currently demonstrated gold and copper grades are commensurate with those of economic porphyry systems within the region, and importantly distinguish Cascabel as a high grade example. The company has an active field program underway, designed to bring this compelling porphyry target to a drill testing stage in the coming months. The company recognises support from its existing shareholders and welcomes new shareholders."

Solgold's share price was unchanged at 1.62p at 08:33 following an early morning high of 1.88p per share.

MF

Recommended

Share tips of the week – 30 September
Share tips

Share tips of the week – 30 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Sep 2022
The best British tech stocks from a thriving sector
Share tips

The best British tech stocks from a thriving sector

Move over, Silicon Valley. Over the past two decades the UK has become one of the main global hubs for tech start-ups. Matthew Partridge explains why,…
29 Sep 2022
These 3 top value stocks offer
Share tips

These 3 top value stocks offer

Professional investor Adam Rackley of Cape Wrath Capital highlights three overlooked value stocks to buy.
29 Sep 2022
Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022

Most Popular

What to do as the age of cheap money and overpriced equities ends
Investment strategy

What to do as the age of cheap money and overpriced equities ends

The age of cheap money, overpriced equities and negative interest rates is over. The great bond bull market is over. All this means you will be losin…
29 Sep 2022
Why everyone is over-reacting to the mini-Budget
Budget

Why everyone is over-reacting to the mini-Budget

Most analyses of the chancellor’s mini-Budget speech have failed to grasp its purpose and significance, says Max King
29 Sep 2022
Mini-Budget: will Kwasi Kwarteng’s gamble on growth work?
Budget

Mini-Budget: will Kwasi Kwarteng’s gamble on growth work?

The government has launched the biggest dash for growth in 50 years, relaunching an approach known as supply-side economics. What is the plan – and wi…
30 Sep 2022