Proactive Investors - Run By Investors For Investors

Southern Gold starts reaping rewards from Cannon gold mine

Southern Gold (ASX:SAU) has received its $2 million share of the first profit-share distribution from the Cannon gold mine operations in Western Australia.
Southern Gold starts reaping rewards from Cannon gold mine
Southern Gold has received $2 million.

Southern Gold owns the Bulong Gold Project located 30 kilometres east of Kalgoorlie, which hosts the Cannon Gold Mine, projected to produce around 50,000 ounces gold.

Westgold Resources (ASX:WGX) is financing and developing the deposit under a 50/50 profit share arrangement with Southern Gold.

Westgold is managing operations at the Cannon gold mine and processing Cannon ore at the South Kalgoorlie Operations Jubilee plant, 35 kilometres to the southwest of Cannon.

The Cannon gold mine operations committee paid $4 million in distributions, or $2 million to each of Westgold Resources and Southern Gold.

Southern Gold has applied $1.5 million of the $2 million distribution to the repayment of the working capital facility provided by Westgold.

The balance of the Westgold loan is circa $1.2 million and it is anticipated that this will be paid back in full on receipt of the next distribution.

The remainder of the maiden distribution, or $0.5 million, has been received as cash.

Southern Gold’s shares were last trading at $0.31 on Wednesday, up 8.77% intraday.
Cash flow from the Cannon gold mine has been many years in the making, with the company now in the most rewarding phase of the operation.

High grade ore is being mined and the processing is continuing to pour gold with several profit share payments expected over the coming months.

View full SAU profile View Profile

Southern Gold Ltd Timeline

Related Articles

Drill pad preparation at Mt Freda complex in Queensland
May 01 2019
Its focus is on ground in Tier 1 provinces, such as on the Mt Freda complex in Queensland and an Olympic Dam structural corridor in South Australia.
Finnish landscape
May 02 2019
A milestone was reached in December last year, when the company announced a maiden inferred gold-cobalt estimate
Cobalt symbol, Co
March 12 2019
Winmar is planning a London listing and intends to return to the ASX.

© Proactive Investors 2019

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