Southern Gold plans share issue on ASX

MINER Southern Gold has announced plans to raise up to A$4.5 million (US$4.4 million) through share issues to fund its activities in Australia and Cambodia. The firm is exploring on seven tenements in Mondulkiri, Ratanakkiri and Kratie provinces.

It plans some 5,000 metres of test drilling as well as 12 kilometres of trenching at five prospects to be completed in Cambodia by February 2011, according to a presentation from the firm. Southern Gold claims to be pursuing “early mover advantage” in the Kingdom.

The firm has announced two share placements in filings to the Australian Securities Exchange. The first is an A$3 million placement to institutions and the wholesale market, at A$0.068 a share for 44.2 million shares.

The second is an offering to its existing shareholders, which it claims could raise a maximum of A$1.5 million before closing on December 3. Its shares closed on the Australian Securities Exchange yesterday at A$0.072 each.

Japan Oil, Gas and Metals National Corporation could earn up to 51 percent interest on two Southern Gold Cambodia projects, depending on the level of funding it commits.

It had spent $3.3 million to date, and committed another $1.2 million for the 2010 to 2011 period, the firm said.

Southern Gold joins a number of miners active in the Kingdom who have recently announced share offerings. Brighton Minerals began trading at the beginning of November on the ASX. Liberty Mining, has announced plans to conduct a float on the exchange early next year. It holds a number of concessions in northeastern and northwestern Cambodia. The firm’s Managing Director Richard Stanger has said the large number of miners conducting offerings was largely coincidental, though high gold prices also made the offerings potentially more lucrative.
(source from the phnompenhpost newspaper, Friday, 19 November 2010 15:01 Jeremy Mullins)