Southern Gold has concluded the selling process of its Australian exploration assets to Sydney-based Aurenne Group Holdings via its subsidiary Aurenne Cannon for AU$2.5 million. The assets include the Bulong South, Glandore, and Cowarna gold projects.
“Southern Gold has successfully concluded a transaction to turn the Australian assets into cash. The $2.5 million is the equivalent of approximately 3c per Southern Gold share and takes our pro-forma cash balance after the recent $2.3m rights issue to over $5m post-completion,” said Southern Gold Managing Director Simon Mitchell.
“This frees up the company to concentrate on the South Korean story and our epithermal high-grade gold-silver discoveries that have been made over the last 12 months. We are uncovering some exceptional targets, including the recently announced ultra-high grade Bonanza and Thorn Zones at the Deokon Project, and with this repositioning and cash injection we are now able to get the drill rigs turning.”
Aurenne has paid a 10 per cent deposit on the assets, refundable if the conditions precedent are not satisfied or waived. Conditions precedent for the transaction are Southern Gold shareholder approval (if required) and Ministerial consent for the transfer of the tenements. The tenements relevant to the transaction are appended.
Aurenne is a fully funded gold mining group who purchased 50 per cent of the Kalpini Gold Project in 2018. Kalpini is located approximately 65 kilometres northeast of Kalgoorlie in the Eastern Goldfields of Western Australia and mining at the project was successfully completed in May 2019.
Southern Gold was advised on the transaction by PCF Capital Group with legal advice provided by HopgoodGanim.