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Solomon Gold raising A$3.4 mln in placing

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Solomon Gold (LON:SOLG) plans to raise A$3.405 million through placing 28,758 million shares with institutional and private investors at 8 pence each, and the shares are expected to start trading by March 6.

The funds are earmarked for the continued exploration at its Rannes project in Queensland, Australia, including further resource drilling at the Kauffmans and Crunchie deposits.

Chief executive Malcolm Norris is taking up 422,297 shares in the placing, which represents 0.1 per cent of the capital, while executive director Nicholas Mather is taking 844,595 shares, raising his holding to just over 39 million shares, or a 12.4 per cent stake.

The group announced earlier this week it expects to report an updated inferred resource estimate for the Rannes project at the end of the first quarter 2012.

The last estimate, in November 2011, took the resource to 812,000 ounces of gold equivalent.  Solomon has a 2 million ounce target for the project.  Resource definition drilling continues, with encouraging results.

Solomon is currently exploring a number of gold and mineral properties in the Solomon Islands and Queensland.

During the reporting period drilling continued at two prospects on the Fauro Island project. Ground based sampling was undertaken on nine prospects, including additional ground work at the Ballyorlo and Meriguna prospects. 

Drilling was stopped in December 2011, and all data from the Fauro project is currently being reviewed, prior to planning the next phase of work.

At the Guadalcanal joint venture project, ground based exploration continued over the five project areas. 

At the Mt Perry project in Queensland, exploration continued on known prospects.

Earlier this month, the company acquired three new early stage exploration properties in the Solomon Islands.

It bought Honiara Holdings Pty Ltd, which owns the properties, for A$50,000. According to Solomon, the licences have low minimum spending requirements.

Quick facts: SolGold plc

Price: 19.78 GBX

AIM:SOLG
Market: AIM
Market Cap: £365.2 m
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