PERTH (miningweekly.com) – Junior Southern Gold will raise A$10-million through an institutional placement.
The South Korea-focused explorer on Tuesday said that it has received binding commitments from sophisticated and institutional investors for the placement of more than 71.4-million shares, at a price of 14c each.
The share placement will be subject to shareholder approval, with funds used towards increasing Southern Gold’s exploration efforts in South Korea.
Aim-listed investment specialist Metal Tiger has subscribed for some A$3.33-million Southern Gold shares, becoming a cornerstone investor in the junior explorer.
“This is a truly transformative transaction and it injects significant project advancement funding that can immediately lift the exploration work rate across our South Korea gold holdings,” said Southern Gold MD Simon Mitchell.
Metal Tiger, as a new cornerstone investor, is technically sophisticated and highly selective. Its investment is an important vote of confidence in Southern Gold’s ability to leverage its unique position in South Korea into one of advanced discovery and value uplift.”
As part of its investment, Metal Tiger has appointed geologist Terry Grammer to the Southern Gold board.
Grammer is joined by economic geologist Douglas Kirwin, who is also joining the board.