Copper explorer SolGold (LON:SOLG) has taken the unusual step of thanking shareholders who back a recent cash call at above the market price.
SolGold received acceptances for 74.7mln shares for an offer at 3p, around 29% of the shares for sale. When the offer closed in April, SolGold shares were trading at around 2.5p.
Nick Mather, an executive director, who bought about 20mln shares himself in the offer said: “I am writing to thank you for your continuing support.
“In particular I am writing to thank those of you who took part in the recent Open Offer and placing in SolGold at 3p per share.
“The board realises that at the time of this investment, the share price was significantly lower than the offer price and we take your investment in those circumstances as a clear and welcome demonstration of support for SolGold's endeavours at its Cascabel project in Ecuador.”
As the offer was not fully subscribed it was now working towards placement of the balance with large, long term investors, Mather said.
SolGold has drilled ten holes so far at Cascabel, with bumper grades of copper found in at least two holes.
Drilling has just started at the next hole and Mather said: “As we drill towards the target in Hole 11 it is with a sense of great moment that we anticipate further extension of the mineralisation to the north west of the Central Alpala area.”
He repeated the strategy now is to produce a certified high grade copper gold resource at Cascabel in approximately 12 months.
“In order to achieve this we are aiming to increase the number of rigs on site and undertake directional drilling off existing holes, delivering more intersections, faster and cheaper.
“We believe our future is underwritten by a likely appreciation in the copper price and continued improvement in the economic and regulatory outlook in Ecuador,” he added.