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.
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.”