Eligible shareholders will be offered shares at an issue price of 11 cents each and on the basis of one new share for every three shares held at the record date on June 21, 2019.
In addition, a free attaching option, exercisable at 18 cents per share at any time until expiry on December 31, 2021 will be issued on the basis of one option for every two new shares issued.
Southern will use the funds raised from the new issue towards exploration in South Korea and to fund its joint venture contributions.
The company recently defined a substantial epithermal gold target over a 5.7 square kilometre area at the Beopseongpo Gold Project in South Korea.
Recent fieldwork has identified five major veined zones with width in excess of 20 metres and combined strike length in excess of 2,570 metres.
All five vein zones - Golden Palm, Lotus North and South, Hand of Faith, Phoenix and Enigma - returned weak to moderate anomalous gold and silver values with peaks of 31.9 g/t gold and 23.5 g/t silver.
The company is also advancing several prospects within its wider Deokon Gold Project in South Korea.
Follow-up on a new mineralised area at Deokon has returned up to 78.6 g/t gold and 13,000 g/t silver in a float sample, extending the potential to the east.
Sample from the Deokon gold-silver project in South Korea
Southern will also drill at Weolyu, a historical small-scale silver-gold-germanium mine with very high grade silver which is indicative of a high-grade mineralised system.
The companies are targeting first gold pour in 2020 with development costs backed by near term cash from the sale of Southern’s Australian assets.