The Directors of Southern Gold Limited (SAU) are pleased to announce that Southern Gold and Integra Mining Limited (IGR) have executed a Share Subscription Agreement pursuant to which Integra has agreed to take a placement of Southern Gold shares equal to 10% of the expanded share capital at $0.05 per share to develop Southern Gold’s wholly owned Cannon Gold Resource.
Commenting on the transaction, Southern Gold Managing Director, Nanette Anderson said “this initial business relationship with Integra Mining is seen as a key step forward in realising value from our exploration success at the Bulong Gold project. The funding premium to the current share price highlights the value placed by our industry peer on the high quality and potential of the Cannon Gold Resource; These are near surface gold ounces which warrant economic evaluation”. Further, Nanette Anderson pointed out that, “Southern Gold acknowledges the commercial success of Integra as evidenced by their successful exploration and recent development of several nearby gold resources. We see a strong business synergy and added value in our relationship with Integra in the evaluation and possible development of the Cannon Gold Resource”.
Integra will be issued with a number of fully paid ordinary shares that is equal to 10% of Southern Gold’s expanded issued share capital at the time of completion of the placement, calculated (based on the current share capital structure of Southern Gold) as 26,976,644 ordinary shares at $0.05 cents per share, for consideration payment of approximately $1.35 million. The Southern Gold shares placed to Integra will be subject to a 12 month voluntary escrow period. Integra has agreed to a standstill period of 12 months following completion of the placement, subject to certain exceptions including Southern Gold Board approval and a 3% creep provision for on-market share purchases during any 6 month period up to a maximum shareholding of 15%.
http://www.traderdealer.com.au/Fundamentals/sau
