TIDMSOLG
RNS Number : 4860S
SolGold PLC
03 October 2017
SolGold plc
("SolGold" or the "Company")
Admission to the Main Market and cancellation of trading on
AIM
Further to the announcement of 18 August 2017, the Board of
SolGold (the "Board") is pleased to announce that the Company has
issued a prospectus in connection with its admission to listing of
its ordinary shares (the "Ordinary Shares") on the Standard Listing
segment of the Official List of the UK Listing Authority (the
"Official List") and admission to trading on the main market for
listed securities (the "Main Market") of London Stock Exchange plc
(the "London Stock Exchange") (together, "Admission").
The Prospectus was approved by the UK Listing Authority on 2
October 2017 and is available to be viewed on the Company's website
at: www.solgold.com.au/prospectuslisting.
Dealings in the Ordinary Shares are expected to commence at 8.00
a.m. on 6 October 2017 subject to the receipt of the necessary
approval from the London Stock Exchange.
The Company's shares will continue to be registered with their
existing ISIN number GB00B0WD0R35 and SEDOL number B0WD0R3. The
Company's ticker symbol will continue to be SOLG. The Company's
existing share certificates will remain valid.
The Company's existing shareholders should consult their own tax
advisers as to the tax implications of the Company's proposed move
to the Main Market.
By order of the Board
Karl Schlobohm
Company Secretary
Brisbane, Australia
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 / Mr Richard Morrison Tel: +44 (0) 20 3470
0470
SP Angel Corporate Finance LLP (NOMAD and Broker)
ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, dual AIM and TSX--listed
(SOLG on both exchanges) copper gold exploration and future
development company with assets in Ecuador, Solomon Islands and
Australia. SolGold's primary objective is to discover and define
world--class copper--gold deposits. The Board and Management Team
have substantial vested interests in the success of the Company as
shareholders as well as strong track records in the areas of
exploration, mine appraisal and development, investment, finance
and law. SolGold's experience is augmented by state of the art
geophysical and modelling techniques and the guidance of porphyry
copper and gold expert Dr Steve Garwin.
SolGold was shortlisted as a nominee for the Mining Journal
Explorer Achievement Award for 2016. The Company announced USD54m
in capital raisings in September 2016 involving Maxit Capital LP,
Newcrest International Ltd and DGR Global Ltd, and a USD41.2m
raising in June of 2017 largely from Newcrest International with
USD1.2m raised from Ecuadorean investors. All of these raisings
were undertaken at substantial premiums to previous raisings, and
SolGold currently has circa USD65 million in available cash to
continue the exploration and development of its flagship Cascabel
Project.
Mr Craig Jones joined the SolGold Board on 3 March 2017,
nominated to the Board of SolGold by Newcrest Mining, now a 14.54%
shareholder in SolGold. Mr Jones is a Mechanical Engineer and is
currently the Executive General Manager Wafi-Golpu
(Newcrest-Harmony MMJV). He has held various senior management and
executive roles within the Newcrest Group, including General
Manager Projects, General Manager Cadia Valley Operations,
Executive General Manager Projects and Asset Management, Executive
General Manager Australian and Indonesian Operations, Executive
General Manager Australian Operations and Projects, and Executive
General Manager Cadia and Morobe Mining Joint Venture. Prior to
joining Newcrest, Mr Jones worked for Rio Tinto.
Cascabel, SolGold's 85% owned "World Class" (Ref: Cautionary
Notice http://www.solgold.com.au/cautionary-notice/) flagship
copper--gold porphyry project, is located in northern 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 5.34% of TSX--V--listed Cornerstone
Capital Resources ("Cornerstone"), which holds the remaining 15% of
ENSA, the Ecuadorian registered company which holds 100% of the
Cascabel concession. Subject to the terms of existing agreements,
Cornerstone is debt financed by SolGold for its share of costs to
completion of a Feasibility Study ("Financing Option"). In terms of
repayment, SolGold shall receive 90% of Cornerstone's distribution
of earnings or dividends from ENSA or the Tenement to which
Cornerstone would otherwise be entitled until such time as the
amounts so received equal the aggregate amount of expenditures
incurred by SolGold that, but for the Financing Option, would have
been payable by Cornerstone, plus interest thereon from the dates
such expenditures were incurred at a rate per annum equal to LIBOR
plus 2 per cent until such time as SolGold is fully reimbursed.
The investments by Newcrest for 14.54% of SolGold endorses
Ecuador as an exploration and mining destination, the management
team at SolGold, the dimension, size and scale of the growing
Alpala deposit, and the prospectivity of Cascabel and its multiple
targets. The gold endowment, location, infrastructure, logistics
are important competitive advantages offered by the project.
To date SolGold has completed geological mapping, soil sampling,
rock saw channel sampling, geochemical and spectral alteration
mapping over 25km2, along with an additional 9km2 of Induced
Polarisation and 14km2 Magnetotelluric "Orion" surveys over the
Alpala cluster and Aguinaga targets.
SolGold has completed over 42,000m of drilling and expended over
USD50M on the program, which includes corporate costs and
investments into Cornerstone. This has been accomplished with a
workforce of up to 176 Ecuadorean workers and geoscientists, and 6
expatriate Australian geoscientists. The results of 35 holes
drilled (including re-drilled holes) and assayed to date have
produced some of the greatest drill hole intercepts in porphyry
copper-gold exploration history, as indicated by Hole 12
(CSD-16-012) returning 1560m grading 0.59% copper and 0.54 g/t gold
including, 1044m grading 0.74% copper and 0.54 g/t gold.
The average grade of all metres drilled to date on the project
currently stands at 0.32% copper and 0.27 g/t gold. Intensive
diamond drilling is planned for the next 12 months with 10 drill
rigs expected to be operational by early 2018, targeting over
90,000m of drilling per annum.
Cascabel is characterised by fifteen (15) identified targets,
"World Class" drilling intersections over 1km in length at
potentially economic grades, and high copper and gold grades in
richer sections, 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 drill tested 4 of the 15 targets, being
Alpala Northwest, Alpala Central, Hematite Hill, and Alpala
Southeast. Currently drill testing of Alpala Northwest, Alpala
Central and Alpala Southeast targets is underway, with drill
testing of the Aguinaga target to commence in August 2017.
The Alpala deposit is open in multiple directions and the
mineralised corridor marked for drill testing of the greater Alpala
cluster occurs over a 2.2km strike length from Trivinio in the
northwest to Cristal in the southeast. The mineralised corridor is
known to be prospective over approximately 700m width.
High priority targets within the Alpala cluster, at Moran
approximately 700m to the north, and at Aguinaga approximately
2.3km north east, are closely modelled by 3D MVI magnetic
signatures that currently encompass over 10Bt of magnetic rock.
Based on a strong spatial and genetic relationship between copper
sulphides and magnetite, this body of magnetic rock is considered
to be highly prospective for significant copper and gold
mineralisation, and requires drill testing.
SolGold is focusing on extending the dimensions of the Alpala
deposit including Hematite Hill, Alpala South East, Cristal, Alpala
Northwest and Trivinio before completing a resource estimate and
drill testing of the other key targets within the Cascabel
concession at Aguinaga, Tandayama-America, Alpala West, Carmen,
Alpala East, Moran, Parambas, and Chinambicito.
The Company is currently planning further metallurgical testing
and completion of an independent Pre-Feasibility Study at Cascabel.
SolGold is investigating both high tonnage open cut and underground
block caving operations, as well as a high grade / low tonnage
initial underground development towards the economic development of
the copper gold deposit/s at Cascabel.
Drill hole intercepts have been updated to reflect current
commodity prices, 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
0.63, determined using an updated copper price of USD3.00/pound and
an updated gold price of USD1300/ounce. True widths of down hole
intersections are estimated to be approximately 25-50%.
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 promising porphyry copper gold targets throughout the
Country. 38 such concessions have been granted and announced to
date. SolGold is negotiating external funding options which will
provide the Company with the ability to have some of these projects
fully funded by a third party while focussing on Cascabel.
In Queensland, Australia the Company is evaluating the future
exploration plans for the Mt Perry, Rannes and Normanby projects,
with drill testing of the Normanby project planned for the coming
quarter. 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,
Solomon Islands in the South West Pacific, where the 100% owned,
but as yet undrilled, Kuma prospect on the island of Guadalcanal
exhibits surface lithocap 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, and dual-listed onto the TSX
in July 2017 (both exchanges using the ticker code: SOLG) and
currently has on issue a total of 1,516,245,686 fully-paid ordinary
shares, 31,795,884 share options exercisable at 28p; 9,795,884
share options exercisable at 14p and 46,762,000 share options
exercisable at 60p.
END
This information is provided by RNS
The company news service from the London Stock Exchange
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