THE BOURSE WHISPERER: Southern Gold (ASX: SAU) received binding commitments from sophisticated and institutional investors to raise $10 million.
Southern Gold said the objective of the placement of just over 71.4 million ordinary shares at 14 cents per share was to lift the company’s gold exploration effort in South Korea to higher level, including a doubling of the field teams and diamond drilling rate.
The placement resulted in AIM-listed investment specialist, Metal Tiger subscribing for a cornerstone position under a subscription agreement that provides the right for Metal Tiger to nominate one director to the company Board.
Prominent geologist, Terry Grammer has been nominated under this provision.
Also joining the Southern Gold Board, effective immediately, is economic geologist, Douglas Kirwin, who has been acting in a technical advisory capacity for Southern Gold but now steps up into a much more prominent role as non-executive director of the company.
“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 in the company’s announcement to the Australian Securities Exchange.
“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.
“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.”