RNS Number:7560J
Solomon Gold PLC
12 December 2007
12th December, 2007
Announcement to London Stock Exchange
Solomon Gold plc
SOLOMON GOLD PLACMENT OF 17.5M SHARES AT £0.18 TO RAISE £3,150,000
The Directors of Solomon Gold Plc advise that the Company has signed commitments
for a placement of 17.5 million shares at 18p per share for gross proceeds of
£3,150,000 Pounds. The shares are to be issued on 18 December 2007. The funds
raised are to be applied to Solomon Gold's exploration program on Guadalcanal in
Solomon Islands.
The Company intends to continue its exploration program, focusing on the
Sutakiki Gold Project 30km south-east of the capital Honiara. Recently the
Company reported a high grade gold intersection of 32m at 9.45g/t at 185 metres
depth in drill hole SK011. Solomon Gold is operating three drilling rigs in the
Sutakiki and Koloula valleys in the search for a world class gold or copper gold
ore body.
In addition to the drilling progam the company intends to conduct an air borne
electro-magnetic survey over 155 km2 of prospective target areas within the
Company's tenements over the Koloula and Sutakiki valleys. The survey is
designed to detect mineralised structures. The results of this survey, together
with ongoing mapping and sampling programs and reinterpretation of aero magnetic
data collected by the Company in 1997, are expected to define a number of high
grade drill targets. The airborne survey is expected to commence in February,
2008.
About Solomon Gold plc
Solomon Gold holds five granted tenements on the main Island of Guadalcanal,
Solomon Islands, for minerals exploration focusing on copper and gold rich
porphyry systems and high grade epithermal gold mineralisation. The tenements
cover 468 km2 and are current, including rights to renewal periods, until 10
November 2011. The company listed on AIM (London Stock Exchange) on 10 February
2006 after a £5m capital raising. The Company has expended those funds in
accordance with the proposed work program and budget and has now established the
necessary infrastructure and field support facilities and gathered sufficient
data from surface mapping, sampling and subsurface drilling programs to enable a
further program of exploration drilling to enable, with added efficiency, the
exploration for world class gold and copper orebodies.
The Company believes the area has the potential for the discovery of a world
class copper gold porphyry system similar to other large gold equivalent
orebodies in the region such as Ok Tedi (50m oz Au Eq), Grasberg (100m oz Au
Eq), Lihir (40m oz Au) and Bougainville (50m oz Au Eq). These orebodies are
located on the circum- Pacific zone of volcanoes and associated mineralisation
and Solomon Gold management have identified geological features which point to a
strong possibility of similar discoveries being made on the Solomon Gold
tenements.
Solomon Gold has identified approximately 30 km2 of mineralisation indicative of
significant porphyry copper gold and epithermal gold mineralisation systems and
is currently engaged in a three rig program, drilling key targets. Recently the
drilling program returned a spectacular intersection of 32 metres at a grade of
9.45 grams per tonne from 108m depth gold at the Sutakiki prospect,
demonstrating the potential for discovery of a high grade gold resource. The
high grade gold mineralisation encountered in the recent drilling is
characteristic of high grade gold deposits related to mineralised transform
structures in Papua New Guinea such as Porgera and in the Indonesian archipelago
such as Halmahera.
Solomon Gold is staffed by an active team of expatriate and Solomon Island
geologists and field hands, supported by integrated logistics support services
including a helicopter contract.
Solomon Gold's key prospects are the Sutakiki, Mbina and Chikora gold and copper
prospects which all align on a key transform structure through Guadalcanal, and
the Mbetilonga Copper gold project, just 15 km south of Honiara, the national
capital.
The program is augmented by the services of two drilling contractors operating a
total of three rigs.
The past year has seen Solomon Gold focus its exploration efforts primarily on
the Sutakiki prospect in the Sutakiki Valley on the northern side of Guadalcanal
and the Mbina and Chikora prospects in the Koloula Valley on the southern side
of Guadalcanal. During the year the Company perfected access into the Kuma
Valley to the east of the Koloula Valley and conducted stream sediment and
mapping and sampling programs over areas of extensive mineralisation. No work
was conducted on the Mbetilonga prospect area and the Poleo application to the
west of Koloula was relinquished.
In addition the Company applied for several new tenement areas. One of these
has been granted.
The Fauro Island area was applied for over an extinct volcanic caldera which has
yielded significant surface and drilling results for gold in the past, in
programs conducted by other explorers. Solomon Gold's relationships with local
landowners are expected to deliver access to the area in the near future. Fauro
is located in the Western Provinces immediately south of the Papua New Guinea
border and the giant Bougainville copper gold porphyry. The Fauro project has
potential for both epithermal gold and porphyry style copper gold deposits.
Three exploration licence areas prospective for Nickel laterites on east
Guadalcanal, and Makira and Ngella in the Floridas island group were applied
for.
It is the current intention of Solomon Gold to define a world class gold or
porphyry copper gold deposit and ultimately bring it to production. Solomon Gold
has access to the required exploration development and financing skills to
achieve this goal.
Director Interests
Each director (either directly or indirectly) is participating in the share
placement on the same terms of all other participants. Whilst the issue of
shares to the Directors in the placement is below the threshold to be considered
a "related party" transaction pursuant to the AIM Rules for Companies (Rule 13),
the Board has consulted with the Company's nominated adviser, RFC Corporate
Finance Ltd, who has advised that the terms of the Directors participation in
the Placing are fair and reasonable insofar as its shareholders are concerned.
The table below sets out each director's interests on Ordinary Shares of the
Company before and after the share placement (shares to be issued 18 December
2007).
Director Current shareholding % total Placement Shareholding % total
following placement
Nicholas Mather 565,159 2.1% 2,340,521* 2,905,680 6.6%
Cameron Wenck 212,045 0.8% 120,000 332,045 0.8%
Brian Moller 92,535 0.3% 117,983 210,518 0.5%
Robert Weinberg 27,000 0.1% 55,556 82,556 0.2%
Total Company 26,825,001 17,500,000 44,325,001
*Note: All 2,340,521 placement shares are held in Samuel Holdings Pty Ltd < ATF
The Samuel Discretionary Trust >, which has become a significant shareholder
following the placement (holding 5/3%)
Significant shareholders
As a result of the Placement, the Company is aware of the following changes in
significant shareholdings:
Significant shareholder Current % total Shareholding % total
shareholding following placement
RAB Special Situations (Master) Fund 852,103 3.2% n/a < 3%
Ltd
Cat Brokerage AG n/a < 3% 1,388,000 3.1%
Williams de Broe n/a < 3% 1,700,000 3.8%
Phoenix Gold Fund Ltd n/a < 3% 2,750,000 6.2%
By order of the Board
DP Cornish
Company Secretary
Contacts:
Mr Duncan Cornish
Secretary
Tel: +61 7 3303 0680 or dcornish@solomongold.com
Mr Stephen Weir
RFC Corporate Finance
Nominated Advisor
Tel +61 2 9250 0048 or Stephen.Weir@rfc.com.au
This information is provided by RNS
The company news service from the London Stock Exchange
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