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

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Government plans could see NS&I boost interest rates
Savings

Government plans could see NS&I boost interest rates

The government-backed bank has a new funding target, which could prompt it to boost the rates on its Premium Bonds, ISAs and bonds.
16 Mar 2023
Share tips of the week – 17 March
Investments

Share tips of the week – 17 March

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
10 Mar 2023
How to make your child a tax-free millionaire by age 37
Investments

How to make your child a tax-free millionaire by age 37

Exclusive research for MoneyWeek reveals how funding an ISA and a pension for your child until age 18 could build up a seven-figure sum by the time th…
14 Mar 2023