leadf
logo-loader
viewSouthern Gold Limited

Southern Gold directors dig deep with placement support for South Korean gold strategy

Prominent global copper and gold investor Metal Tiger PLC has become a substantial shareholder with 22 million shares for a 17.14% stake.

Southern Gold Limited - Southern Gold directors dig deep with placement support for South Korean gold strategy
The company’s recent placement raised $4 million

Southern Gold Limited (ASX:SAU) (FRA:UH4) directors have shown their support for the company’s gold strategy centred on South Korea through participation in a $4 million placement.

Participation of the directors in the placement was approved by shareholders at a meeting this month with the purchases taking place on May 14 at 10 cents per share.

Metal Tiger participation

Prominent global copper and gold investor Metal Tiger PLC (LON:MTR) also participated with a $2.2 million investment and as a result has become a new substantial shareholder, holding 22 million shares for a 17.14% stake.

The UK-based company bought more than 5.02 million shares valued just over $502,000 in early April and on May 14 purchased almost 16.98 million shares valued at $1.698 million.

Director purchases

Non-executive chairman Greg Boulton purchased 500,000 shares valued at $50,000 in an indirect interest and now holds 2,878,256 shares in that interest.

Executive director Bong Joo (Beejay) Kim bought 300,000 shares valued at $30,000 in a direct interest, representing his first purchase.

Two non-executive directors, David Turvey and Douglas Kirwan, acquired 200,000 placement shares in indirect interest with each transaction valued at $20,000.

Turvey now holds 868,278 shares in that indirect interest while Kirwan now holds 333,334 shares in his indirect interest.

Fellow non-executive director Peter Bamford bought 140,000 shares valued at $14,000 in an indirect interest taking his holding in that interest to 406,667 shares.

Southern Gold’s shares last traded at 12 cents, up from 9 cents at close on March 13.

“Solid new cornerstone investor”

Metal Tiger retains the right to nominate one director to the company for so long as it holds an interest in the company of at least 10% with geologist Terry Grammar nominated to join the Southern Gold board.

At the time of the placement, Southern Gold’s managing director Simon Mitchell said: “It is times like these that good supportive major shareholders, a solid new cornerstone investor such as Metal Tiger PLC and the backing of an excellent broker in Ashanti Capital, have all contributed to pulling together $4 million in the most difficult of markets.”

Quick facts: Southern Gold Limited

Price: 0.105 AUD

ASX:SAU
Market: ASX
Market Cap: $20.87 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Southern Gold Limited named herein, including the promotion by the Company of Southern Gold Limited in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Southern Gold's Simon Mitchell discusses value realisation plans for Gubong...

Southern Gold Ltd's (ASX:SAU) Simon Mitchell speaks to Proactive's Andrew Scott after announcing they're seeking to realise value from its 50% equity interests in the Gubong and Kochang projects in the Republic of Korea. He says they're offering them to joint venture partner Bluebird Merchant...

on 5/8/20

2 min read