24th Mar 2014 10:27
LONDON (Alliance News) - SolGold PLC Monday said it it has raised GBP4.1 million in an oversubscribed share placing with new institutional investors and existing shareholders, as an update on the company's Cascabel Project revealed that Hole 6 is progressing well towards its target.
SoldGold raised the GBP4.1 million by issuing just over 45.1 million shares at 9 pence each. The placing was carried out by SolGold's UK broker, SP Angel.
The shares are expected to begin trading in a week's time.
SolGold, which has operations in northern Equador, Australia and the Solomon Islands, also said a contract has been signed with Quantec Geoscience for a deep-earth imaging orion 3D IP survey at Cascabel, the copper-gold project in Equador.
In an update on its Cascabel Project, SolGold said Hole 6 was at a depth of 547 metres and progressing towards a magnetic target that is modelled at around 630 metres depth.
Hole 5 encountered particularly high grade porphyry copper-gold mineralisation from a depth of 658 metre down hole, coinciding with a modelled magnetic susceptibility shell with a magnetic intensity of 0.02066 SI units.
Chief Executive and Managing Director Alan Martin said the strong demand for SolGold's capital raising is pleasing for the Cascabel project.
"Hole 6 marks the start of the Stage 2 drill program and we are very happy with the alteration and copper sulphide mineralisation which is visible in the hole so far, given our target depth for the high grade "potassic" zone is around 630 metres. The IP survey is very exciting as it should be able to detect sulphide minerals to depths of at least 800 metres and resistivity effects to around 2 km depth," Martin said in a statement.
SolGold shares were Monday quoted at 9.40 pence, down 8.3%.
By Samuel Agini; [email protected]; @samuelagini
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