Southern Gold Limited (ASX:SAU) substantial shareholder Metal Tiger PLC (ASX:MTR) (LON:MTR), a prolific global resources sector investor, has lifted its interest in the South Korean focused explorer to 19.12%.
To lift its interest from 17.14%, the UK-based investor secured three million Southern Gold shares at around 7.5 cents each.
Michael McNeilly, Metal Tiger’s chief executive officer, also serves as a non-executive director of Southern Gold.
Prolonged investment
Metal Tiger has increased its holding in Southern Gold since late October 2020, initially snapping up nearly 14 million ordinary shares for almost $1.7 million under a share placement.
Since then, the resource investor’s stake in the ASX-lister has increased incrementally, often in small parcels containing just hundreds of thousands of shares purchased on the market.
Metal Tiger now holds around 40 million ordinary Southern Gold shares, with over 213 million SAU shares on issue.
The UK-based resources investor also holds interest in more than seven million two-year Southern Gold warrants, priced at 18 cents each.
Ultimately, Metal Tiger’s latest investment in Southern Gold, along with five previous ordinary share investments tabled over the last nine months, points to the company’s exploration potential and validates its projects.
Gold and silver exploration in South Korea
Presently, Southern Gold is exploring its portfolio of wholly-owned, high-grade gold exploration projects in South Korea.
The assets are primarily comprised of greenfield gold and silver targets in an area that has seen very little modern exploration.
In February this year, the company revealed it was hard at work on its 2021 exploration campaign, with activity underway at seven of Southern Gold’s South Korean projects.
Over the March quarter, the company spent $649,000 on operations. It held more than $9 million in cash and cash equivalents by the end of the period.