The directors of Australian-based and South Korean-focused gold explorer Southern Gold Ltd announced that the company has received binding commitments of more than 71.4 million shares at $0.14 per share to raise A$10 million, including an investment by Metal Tiger PLC valued around $3.3 million.
The placement, which is subject to shareholder approval, aims to lift Southern Gold’s exploration effort in South Korea to a more significant level, including a doubling of the field teams and diamond drilling rate.
Metal Tiger has subscribed for a cornerstone position in the placement under a subscription agreement. The agreement provides the right for Metal Tiger to nominate one director to Southern Gold for so long as Metal Tiger holds an interest in the company of at least 10 per cent. Prominent geologist Terry Grammer has been nominated under this provision. He has more than 40 years’ experience in mining and mineral exploration with extensive experience in Australia, Africa, Southeast Asia and New Zealand, and has been involved in numerous ASX-listed companies that have achieved dramatic growth.
Also joining the board of directors, effective immediately, is economic geologist Douglas Kirwin, who has 45 years of international experience. He has been acting in a technical advisory capacity for Southern Gold but now steps into a much more prominent role as non-executive director.
“This is a truly transformative transaction as it injects significant project advancement funding that can immediately lift the exploration work rate across our South Korea gold holdings,” Southern Gold Managing Director Simon Mitchell said. “Metal Tiger, as a new cornerstone investor, is technically sophisticated and highly selective. Its investment is an important vote of confidence in Southern Gold’s ability to leverage this unique position in South Korea into one of advanced discovery and value uplift.”
Mr Mitchell continued, “This is reinforced by the appointment to the Board of two industry-leading geologists, Douglas Kirwin and Terry Grammer, both with enviable discovery records, are top tier area-selection geologists and who appreciate what we are uncovering in South Korea.”