Sign up Australia
Proactive Investors - Run By Investors For Investors

Southern Gold Ltd eyes additional near-term production potential

Southern Gold Ltd eyes additional near-term production potential

Southern Gold Ltd (ASX:SAU) has completed the drawdown of a $1 million convertible debt facility from high net worth investors to advance the Cannon and Glandore projects in Western Australia.

The $1 million facility is available as a single drawdown with an 8% interest rate, 2% arrangement fee and repayable by 30 June 2017.

The debt is unsecured but is nominally backed by the issuance of call options with an average strike price of $0.36 per share, expiring on 30 June 2017.

If exercised prior to full debt repayment, proceeds from the options are to be applied to repayment of the loan.

After the drawdown, Southern Gold’s cash position is around $1.56 million.

Southern Gold will use the funds to start diamond drilling at the Cannon Gold Mine, with the intention of extending JORC resources below the open pit, in preparation for potential underground mining.

The company is actively mining at the Cannon Gold Mine where a total 9,978 ounces of gold have been recovered as of the end of January 2016.

Southern Gold will also undertake reverse circulation drilling to advance the portfolio of JORC resource targets at the new Glandore Project, 12 kilometres to the east of Cannon Mine.

The shares of Southern Gold has increased by about 35% since the beginning of 2016.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

View full SAU profile View Profile

Southern Gold Timeline

Related Articles

picture of copper kettle
September 01 2017
Junior might have three mines in operation by the end of 2017
Mawson Resources poised for more drilling after bonanza gold grades at Rompas East
October 19 2017
The group's key assets is the Rompas/Rajapalot project in Fiinish Lapland
1517432704_sienna---lithium.jpg
February 01 2018
Slattberg is a historic mining camp hosting cobalt-nickel-copper-rich massive sulphide mineralization..

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use