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IONDRIVE LIMITED — Capital/Financing Update 2019
Jun 18, 2019
65132_rns_2019-06-18_a7859c97-1cf9-4c0e-b275-9f022da0bbb5.pdf
Capital/Financing Update
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19 June 2019
Dear Shareholder
LETTER TO SHAREHOLDERS - NON-RENOUNCEABLE RIGHTS OFFER
Southern Gold Limited (ASX:SAU) (Company) is pleased to invite you to participate in the nonrenounceable rights issue, as announced on the ASX on 17 June 2019.
The Company is undertaking a non-renounceable pro-rata Rights Issue ( Offer ) to eligible shareholders of ordinary shares in the Company at an issue price of $0.11 per share and on the basis of 1 new share (New Shares ) for every 3 shares held at the record date on 21 June 2019 ( Record Date ).
Pursuant to the Offer, the Company will issue up to 20,856,124 New Shares to raise up to $2,294,174 before costs. In addition, a free attaching option, exercisable at $0.18 per share at any time until expiry on 31 December 2021, will be issued on the basis of 1 option for every 2 new shares issued (up to 10,428,062 options).
This Rights Issue has been launched to ensure the Company is well prepared for the next stage of its development and to ensure that it can execute its Korean-focused strategy.
The proceeds from this Rights Issue will be directed to exploration drilling in South Korea where the Company has a high confidence in confirming several new precious metal deposit discoveries, in addition to supporting salary and overhead costs. Also, the funding will cover our near-term contributions to the 50/50 Joint Venture with London-listed Bluebird Merchant Ventures Ltd (BMV). The Joint Venture is targeting gold production over the coming year with development capital costs to be covered by the proceeds of the WA assets sale.
The Offer will be available to all of the Company's shareholders registered on the Record Date whose registered address is in Australia, New Zealand, European Economic Area (Liechtenstein and Luxembourg), France and Switzerland ( Eligible Shareholders ).
The rights issue is fully underwritten.
A prospectus in relation to the Offer was lodged with ASIC and the ASX on 17 June 2019 and will be sent to Eligible Shareholders with a personalised application form on 26 June 2019. The prospectus is also available on the ASX website and the Company’s website at www.southerngold.com.au/investors.
Entitlements to New Shares, with the free attaching options, can be accepted by Eligible Shareholders in full or in part by completing and returning a personalised application form. Eligible Shareholders may also apply for Shortfall Shares, in addition to their full entitlement Offer.
Southern Gold Limited 10 George Street ABN 30 107 424 519 Stepney SA 5069
PO Box 255 email [email protected] telephone 08 8368 8888 Kent Town SA 5071 web southerngold.com.au facsimile 08 8363 0697
The New Shares will be offered on the timetable as follows;
| EVENT | DATE |
|---|---|
| Announcement of Rights Issue | Monday, 17 June 2019 |
| "Ex" date | Thursday, 20 June 2019 |
| Record Date to identify Shareholders entitled to participate in the Offer |
Friday, 21 June 2019 |
| Prospectus and Entitlement and Acceptance Forms dispatched to Shareholders, Offer period opens |
Wednesday, 26 June 2019 |
| Closing date for acceptances | Thursday, 18 July 2019 |
| Shares quoted on a deferred settlement basis | Friday, 19 July 2019 |
| Notification to ASX of under subscriptions | Tuesday, 23 July 2019 |
| Issue date for New Shares and New Options issued | Thursday, 25 July 2019 |
| Normal trading of New Shares on ASX commences | Friday, 26 July 2019 |
The Directors may extend the Closing Date by giving at least 3 Business Days’ notice to the ASX prior to the Closing Date. As such, the date the new shares are expected to commence trading on the ASX may vary.
If you require clarification on any of the above matters, please contact the Company Secretary, on +61 (8) 8368 8888 and for all general shareholder enquiries, please contact Security Transfer Australia Pty Ltd on 1300 992 916 (within Australia) or +61 3 9628 2200 (outside Australia).
Yours faithfully
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Greg Boulton AM Chairman
Southern Gold Limited 10 George Street PO Box 255 email [email protected] telephone 08 8368 8888 ABN 30 107 424 519 Stepney SA 5069 Kent Town SA 5071 web southerngold.com.au facsimile 08 8363 0697