AUSTRALIAN-BASED Southern Gold has announced a binding agreement for the placement of 71,428,571 ordinary shares in the company at 14c per share.
The objective is to raise $10m toward doubling the exploration and drilling program in South Korea.
AIM-listed investment group, Metal Tiger PLC, will invest about $3.33m, with an agreement for a cornerstone position in the placement and the right to nominate one director to the company.
Southern Gold owns 100pc of several high-grade gold projects in South Korea and has interests in other gold production projects in the region.
The nominee for this position will be Terry Grammer, an award-winning geologist with more than 40 years’ experience in mining and mineral exploration across the globe.
Mr Grammer discovered the Cosmos Nickel deposit for Jubilee Mines in 2000.
World renowned economic geologist Douglas Kirwan, who has been acting in a technical advisory capacity for Southern Gold, will also be joining the company as non-Executive Director.
The share offering, which is supported by the company’s four largest shareholders, is subject to shareholder approval at a March general meeting.
Southern Gold managing director Simon Mitchell the “truly transformative transaction” injected significant project advancement funding that would immediately lift the exploration work rate across the South Korea gold holdings.
“Metal Tiger’s 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,” he said.
