SolGold plc: Closing of £45m Bought Deal
Bishopsgate, London - SolGold plc (LSE and TSX code: SOLG) is pleased to announce that it has closed its previously announced "bought deal" private placement of 180,000,000 ordinary shares in SolGold (the "Offered Shares") at a price of 25 pence (C$0.42) per Offered Share for aggregate gross proceeds of £45,000,000 (C$75,600,000) (the "Offering"). The Offering was led by National Bank Financial Inc. and Canaccord Genuity Corp. on behalf of a syndicate of underwriters that included Cormark Securities Inc., GMP Securities L.P., Paradigm Capital Inc., Red Cloud Klondike Strike Inc., Mackie Research Capital Corporation and Echelon Wealth Partners Inc. (collectively, the "Underwriters").
The gross proceeds from the Offering will be used by the Company for exploration and studies to advance its flagship Cascabel Project, selective regional exploration in Ecuador, working capital and general corporate purposes.
Commenting on the closing, Chief Executive Officer of SolGold Mr Nick Mather said:
"It is particularly gratifying to finalise the raising with a strong institutional support base for SolGold. We continue to strengthen SolGold's ability to take its assets forward through discovery and feasibility towards development. We are building a significant copper company in SolGold and this raising is an important step. It's out of the way now and the Company is now fully funded for well over a year, at both Cascabel and its exciting Pan Ecuadorean exploration project.
At Cascabel, the maiden mineral resource estimate at the Alpala copper gold deposit is due by end December. Next year will see us drill 120,000 metres including Aguinaga, with 12 rigs and we plan regular Mineral Resource Estimate follow ups and subject to ongoing technical progress and management appointments aim to complete a preliminary economic assessment in 2018. SolGold is currently pursuing key management appointments to take charge of these studies.
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Source: SolGold plc (TSX:SOLG, AIM:SOLG, OTC Bulletin Board:SLGGF)