TIDMSOLG
RNS Number : 5522K
SolGold PLC
22 September 2016
22 September 2016
SolGold plc
("SolGold" or the "Company")
Receipt of Superior Investment Proposal
The Board of SolGold (AIM: SOLG) wishes to provide the market
with an update in connection to the proposed subscription to
SolGold shares equal to 10% of the issued capital in SolGold after
the subscription at a price of US8 cents per share by Newcrest
International (Newcrest) under a Share Subscription Agreement
(Agreement) as announced in full detail on 30 August 2016 (Newcrest
Subscription).
Reference is also made to the explanatory disclosures made by
the Board of SolGold in the Notice of General Meeting announced 16
September 2016, seeking approval by shareholders of an investment
in SolGold at US8 cents (approximately 6p) by Newcrest. The Board
of SolGold recommended at the time that shareholders approve the
issue if shares to Newcrest, subject always to no competing
proposal being received and recommended by the SolGold Board.
The Board of SolGold wishes to advise that it has received a
proposal from Maxit Capital LP (Maxit) offering to arrange a cash
investment into SolGold at a price of US16 cents per share,
representing a 100% premium to the last capital raising (Competing
Proposal). The raising is proposed to be for USD20 million. SolGold
has been advised that Maxit has received commitments in excess of
USD20 million at this time.
Alternatively, under the terms of the Competing Proposal
received, Maxit has advised that Newcrest may participate in the
further raising by advising before close of business on 23
September 2016 their participation to the extent of subscribing to
10% of the expanded issued capital of SolGold (or 142,896,661
shares) also at US16 cents for USD22.863m. Maxit and its clients
would in that case subscribe for USD10.137m at US16 cents per
share, resulting in a total raising of USD33m.
The Board of SolGold considers the terms of the Competing
Proposal received to be more favourable to the Company than the
Newcrest Subscription, and has today in accordance with the
requirements of the Agreement, notified Newcrest that it has
received a Competing Proposal which it has reasonably determined
would be more favourable to the Company's shareholders.
The Board will advise the market of developments in respect of
the final size of the raising and the nature and extent of any
participation by Newcrest in that raising or otherwise, and
recommends that shareholders wait for further advice ahead of
lodging any proxy votes for the General Meeting to be convened on
13 October 2016.
By order of the Board
Karl Schlobohm
Company Secretary
Contacts:
Mr Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Executive Director) +61 (0) 417 880 448
nmather@SolGold.com.au
Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661
SolGold Plc (Company Secretary)
kschlobohm@SolGold.com.au
Mr Ewan Leggat / Richard Morrison Tel: +44 (0) 20 3470 0470
SP Angel Corporate Finance LLP (NOMAD and Broker)
Ewan.leggat@spangel.co.uk / richard.morrison@spangel.co.uk
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, AIM--listed (SOLG)
copper gold exploration and development company with assets in
Ecuador, the Solomon Islands and Australia. The Company's primary
objective is to discover and define world--class copper--gold
deposits. SolGold's Board and Management Team have substantial
vested interests in the success of Company, as well as strong track
records in the areas of exploration, mine development, investment,
finance and law. SolGold's experience is augmented by state of the
art geophysical and modelling techniques and the guidance of
Newmont trained porphyry expert Dr Steve Garwin.
Cascabel, the Company's world class flagship copper--gold
porphyry project, is located in North West Ecuador on the
under--explored northern section of the richly endowed Andean
Copper Belt. SolGold owns 85% of Exploraciones Novomining S.A.
("ENSA") and approximately 11% of TSX--V--listed Cornerstone
Capital Resources, which holds the remaining 15% of ENSA, the
Ecuadorian registered company which holds 100% of the Cascabel
concession.
To date SolGold has completed geological mapping, 25km(2) of
soil sampling, 14km(2) and an additional 9km(2) Induced
Polarisation and Magnetotelluric "Orion" surveys over the Alpala
cluster and Aguinaga targets respectively. By June 2016, the
Company had also completed approximately 23,700m of drilling and
expended a total of approximately US$33m on the program, corporate
costs and investments into Cornerstone. Intense diamond drilling is
planned for the next 12 months with four drilling rigs.
Cascabel is characterised by fourteen (14) identified targets,
world class drilling intersections over 1km in length, and high
copper and gold grades, as well as logistic advantages in location,
elevation, water supply, proximity to roads, port and power
services and a progressive legislative approach to resource
development in Ecuador. To date, SolGold has only drill tested one
of the 14 targets, being Alpala.
SolGold is planning a resource statement at Alpala (the most
advanced target at Cascabel) during 2016. This has been delayed by
the discovery of high-grade mineralisation in Hole 17 at Alpala,
extending the immediate resource potential. Alpala is open at depth
in the upper extensions, and to the north, north-east, south-west
and south-east. The mineralised zone at Alpala and Moran is closely
modelled by magnetic signatures and currently encompasses over 10Bt
of magnetic rocks expected to be mineralised with copper and
gold.
SolGold will drill test other key targets within the Cascabel
concession at Aguinaga, Trivinio, Moran, Alpala Northwest, Hematite
Hill, Alpala Southeast, Cristal, Parambas, Carmen Tandayama-America
and Chinambicito. The Company is planning further metallurgical
testing by the end of 2016, and completion of a conceptual early
stage mine and plant design and a scoping study for an economic
development at Cascabel. SolGold is investigating both high tonnage
/ low-medium grade open cut and underground block caving
operations, and a high grade / low tonnage underground
development.
Drill hole intercepts are calculated using a data aggregation
method, defined by copper equivalent cut-off grades and reported
with up to 10m internal dilution, excluding bridging to a single
sample. Copper equivalent grades are calculated using a gold
conversion factor of 0.89, determined using copper price of
US$2.20/pound and gold price of US$1350/ounce.
Following a comprehensive review of the geology and
prospectivity of Ecuador, Solgold and its subsidiaries have also
applied for additional exploration licences in Ecuador over a
number of additional promising porphyry copper gold targets
throughout the length of the Country
In Queensland, Australia the Company is evaluating the future
exploration plans for the Mt Perry, Rannes and Normanby projects.
Joint venture agreements are being investigated for a joint venture
partner to commit funds and carry out exploration to earn an
interest in the tenements.
SolGold retains interests in its original theatre of operations,
the Solomon Islands in the South West Pacific, where the 100%
owned, as yet undrilled, Kuma prospect exhibits surface geological
characteristics which are traditionally indicative of a large metal
rich copper gold intrusive porphyry system. SolGold intends in the
future to apply intellectual property and experience developed in
Ecuador to target additional world class copper gold porphyries at
Kuma and other targets in Ecuador and Argentina.
SolGold is based in Brisbane, Queensland, Australia. The Company
listed on London's AIM Market in 2006, under the AIM code 'SOLG'
and currently has a total of 1,222,716,605 ordinary shares issued,
820,000 options exercisable at 50p, 5,030,000 options exercisable
at 28p and 8,030,000 options exercisable at 14p.
CAUTIONARY NOTICE
The news release may contain certain statements and expressions
of belief, expectation or opinion which are forward looking
statements, and which relate, inter alia, to the Company's proposed
strategy, plans and objectives or to the expectations or intentions
of the Company's directors. Such forward-looking statements involve
known and unknown risks, uncertainties and other important factors
beyond the control of the Company that could cause the actual
performance or achievements of the Company to be materially
different from such forward-looking statements. Accordingly, you
should not rely on any forward-looking statements and save as
required by the AIM Rules for Companies or by law, the Company does
not accept any obligation to disseminate any updates or revisions
to such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLTMPTMBITMAF
(END) Dow Jones Newswires
September 22, 2016 04:46 ET (08:46 GMT)
Solgold (LSE:SOLG)
Historical Stock Chart
From May 2024 to Jun 2024
Solgold (LSE:SOLG)
Historical Stock Chart
From Jun 2023 to Jun 2024