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DGR GLOBAL LIMITED — Capital/Financing Update 2013
Aug 22, 2013
64771_rns_2013-08-22_be77f0f0-6410-4792-a4e0-e051ba08aab9.pdf
Capital/Financing Update
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DGR Global Limited
23 August 2013
Update on Investment in SolGold
The Directors of DGR Global Ltd (DGR, the Company) are pleased to advise that SolGold Plc ( SolGold , LSE(AIM):SOLG), in which DGR holds 54m shares (or approximately 10%), was significantly re‐rated overnight on the back of its announcement regarding the receipt of the Environmental Report Approval from the Ecuadorian Ministry of Environment for its highly prospective Cascabel copper‐gold porphyry project in Ecuador.
Environmental Approval Received
Written approval for the Cascabel Estudio de Impacto Ambiental (EIA) report was received on 21 August (Ecuador time) from the Ministry of Environment in Ecuador’s capital, Quito. The approval of the EIA report by the Ministry of Environment now facilitates the issue of the Environmental License that will enable the commencement of drilling on the Cascabel concession. The Environmental License is expected to be issued within the next few weeks. SolGold currently has a 30% interest in the Cascabel Project, with options to take its ownership through to 85%.
Mobilisation of Drill Rig
Recently, SolGold mobilised the drill rig some 5 kilometres to the Alpala field camp in preparation for the commencement of drilling. SolGold will further mobilise the drill rig and associated equipment from the Alpala field camp to the Drill Hole 1 pad immediately upon signing of the Environmental License by the Minister. This final mobilisation is expected to take approximately 7 days and, if there is no weather delay, it is anticipated that drilling should commence in September.
Market Reaction
Overnight trading on the London Stock Exchange’s AIM Board provided SOLG with a 92% uplift in share price, moving from 4.1p to 8.22 during the evening, closing at 7.88p on a volume of approximately 60 million shares traded. A significant amount of press interest was also generated, fuelling interest in the Company and the Cascabel copper‐gold project.
Over the next two to three months, SolGold is anticipating the receipt of the Environmental Licence, the final stage mobilization of the drill rig to site, the commencement of drilling, and the receipt of the results from the initial drilling campaign. These activities will further advance SolGold’s share of the Cascabel Project, taking it to a minimum 50% equity position. These matters will provide capacity for the further interest of the London market in SolGold.
The full body of last night’s announcement, links to relevant press articles, and further details on SolGold, its projects and its personnel are available on the company’s website: www.solgold.com.au
A copy of last night’s audio interview with SolGold’s CEO Alan Martin is available via the following link: http://www.brrmedia.co.uk/event/115077?popup=true
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DGR Global’s shareholding in SolGold of 54 million shares includes 8.2 million shares acquired at 1.5p in the April 2013 capital raising, and a further 12.9 million shares acquired at 3.5p in the September 2012 capital raising. Last night’s developments, and the likely continued interest in SolGold in the months ahead, vindicates DGR Global’s decision to back SolGold on the underlying strength and prospectivity of the Cascabel Project despite the difficult market conditions encountered in the junior exploration industry over the past 18 months.
The Board of DGR Global looks forward to announcing further activities and results for SolGold over the next few months, together with developments in its other leading investments in Armour Energy and Orbis Gold.
DGR is currently trading at a significant discount to the net tangible asset backing from its core investments in Armour Energy, SolGold, Orbis, Iron Ridge, AusNiCo and Navaho Gold.
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On Behalf of the Board Karl Schlobohm Company Secretary DGR Global Limited
Email: [email protected]
Electronic copies and more information are available on the Company website: www.dgrglobal.com
For further information contact:
Mr Nicholas Mather Managing Director DGR Global Ltd Ph: 07 3303 0680
Karl Schlobohm
Company Secretary, DGR Global Ltd Ph: 07 3303 0680
About DGR Global Limited
DGR Global Limited is focused on generating exploration and development companies in a wide array of minerals.
Projects are conceived directly through the skills and experience of DGR Global’s accomplished team of exploration geoscientists (with an enviable track record), not by the costly purchase of properties. Each project or exploration strategy is held in a separate subsidiary.
Investors can choose to invest specifically in a particular project/commodity, or by investing in DGR Global, invest in the resource company generating business which retains a significant carried interest in each project.
DGR Global projects tend to be very large, targeting new provinces with the potential to make world‐class discoveries. The exploration concepts are often novel. While increased metal prices and advances in technology can turn former sub‐economic deposits into viable projects, DGR Global subsidiary projects frequently emerge from detailed reassessment and reinterpretation of large databases – looking at things from a new angle and with a different focus using state of the art techniques. The DGR Global Directors and Managers have in the past applied new exploration models to extensive tenement areas which have led to identification of new mineral provinces and the discovery of nationally significant resources (eg. Arrow Energy, Bow Energy, Waratah Coal). These efforts are now being dedicated to DGR Global.
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DGR Global currently holds 75 million shares (25%) in Armour Energy Limited (ASX: AJQ) currently focused on the discovery and development of world class gas resources in northern Australia, 39 million shares (18%) in Orbis Gold Limited (ASX: OBS) currently exploring for gold in Burkina Faso, 54 million shares (10%) in SolGold plc (LSE: SOLG) currently exploring for gold and copper in the Solomons, Ecuador and Queensland, 59.8 million shares (14%) in AusNiCo Limited (ASX: ANW) owner of the prospective Taronga Tin Project, and 57 million shares (28%) in Navaho Gold Limited (ASX: NVG) owner of the NavGas Project in South Australia, and several Carlin style gold projects in Nevada and New Mexico (USA).
DGR Global is currently progressing the corporate development of Archer Resources Limited and IronRidge Resources Limited.
DGR Global currently has 409,293,535 shares on issue.
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