The sale and purchase agreement executed with Sydney based private gold mining company, Aurenne Group Holdings via its subsidiary Aurenne Cannon, has now been completed.
This sale price is before adjustments, including a pro-rata refund to Southern Gold of the payment of rents and rates for the sale tenements in the current period, and expenses of the transaction.
Removes ongoing maintenance costs
Southern Gold managing director Simon Mitchell said: “Southern Gold has now completed the important milestone of selling the Australian assets and this not only provides us with significant additional capital of approximately $2.5 million before costs, it also removes the not insignificant ongoing holding costs of maintaining our ground position in Western Australia.
“The transaction value of $2.5 million is the equivalent of 3c per Southern Gold share and enables the company to now focus on the South Korean assets.”
Drilling in full swing
“The drill rig is currently turning at the Beopseongpo Gold Project, where we had land access arrangements already in place and, with the first 4 drill holes or 650 metres now complete, we are well into assessing the project.
“Drilling continues at Beopseongpo with multiple vein systems being tested in this drilling round, but I am highly encouraged by the much-improved drilling productivity which is approaching 30m per day when drilling.
“Excellent progress has also been made in the land access arrangements for the Bonanza Zone at Golden Surprise, including a recently signed land access agreement with a local landowner group, and this bodes well for further drilling continuing for the balance of this calendar year.”