www.solgold.com.au
Solomon Gold was listed on the London Stock Exchange (AIM code : SOLG) on 10 February 2006.
Solomon Gold is headed up by experienced and committed mining industry professionals with demonstratable track records of mineral discovery and providing valuable shareholder return. The Board of Directors include accomplished professionals with experience in exploration, mine development, investment, finance and law. The Board and Management have significant vested interests in the Company, holding approximately 17.5% of its issued share capital. The Company currently has 284,623,489 shares in issue.
Solomon Gold has Exploration tenements in Queensland, Australia and the Solomon Islands.
Solomon Gold to accelerate Fauro project with new £15.1m funding
Solomon Gold (LON:SOLG) is set to accelerate the exploration at the Fauro Island project, as institutional investors provided £15.1 million in new capital.
The company grabbed the headlines last month when its share price spiked with a four-fold intraday surge, following a batch of bumper assays from Fauro.
Through an institutional placing announced today, Solomon is raising £15.1 million with the issue of 54 million new shares at 28 pence each.
"The company has taken the opportunity offered by strong institutional investor interest to accelerate its planned drill programme in Fauro,” chief executive Nick Mather said.
The new capital will progress the exploration programme at Fauro over the next 12 months, Solomon said.
Solomon will conduct a 9,900 metre drilling programme, and it will also carry out extensive mapping, sampling, trenching and geophysics.
In September the company released sampling results from Fauro which prompted a massive share price move.
The results from the first 58 assays provided the initial catalyst for the share price movement, which saw the stock move from just 6.7p on September 14.
On 23 September Solomon reported the second and final batch of bumper assays from the exploration programme.
The shares spiked to a staggering 81p intraday-high, before settling at around 50p each.
In this second batch Solomon revealed that the remaining 157 samples returned up to 97.6 grammes per tonne (g/t) gold and 90.1g/t silver.
Solomon now believes that its wholly-owned project "has the potential to host a world class gold deposit", similar to the massive Lihir mine – which holds one of the world's largest gold resources.
Newcrest Mining’s (ASX:NCM) Lihir mine, on the neighbouring Niolam Island of Papua New Guinea, has 28.8 million ounces (Moz) of gold in reserves, and 43Moz in measured and indicated resources.
Elsewhere the company also intends to use the new capital to fund work on its projects in Queensland, Australia.
It is planning additional near term drilling, which it believes will lead to a significant resource upgrade at the Rannes and Mt Perry Projects.
Earlier this week, Solomon told investors that it had identified wide near surface gold intersections at Rannes.
Mather believes Rannes offers an opportunity to turn a cluster of prospects into an economic project with a central processing plant.
“[The programme] is targeting to increase open-pit resources to about half a million ounces of gold equivalent within three-months,” Mather said.
“There is significant potential for extensive gold rich mineralisation at all the Rannes Prospects.”
Mather’s confidence is reflected by his participation in the latest fundraising, with the chief executive buying 1.1 million shares, to take his total holding to 37.7 million shares, 13.45 percent of the company.
The placing is subject to shareholder approval in Australia, and the company has convened a meeting on 8 November. Solomon said it already has the backing of 56 percent of the votes.
