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LONDON (Alliance News) - SolGold PLC Wednesday said it had begun drilling its hole CSD-13-002 at the Alpala Prospect in Ecuador on Sunday, and had conducted a new GBP3 million share placing after its initial placing was oversubscribed.
The gold exploration company with operations in Ecuador, Solomon islands and Australia said its second exploration hole at the Cascabel Project in Ecuador has reached a depth of 153 metres and aims to test an expected high-yield gold zone at the site in the near future.
On September 11, the company said it had intersected 111.5 metres of copper mineralisation at its CSD-13-001 drilling hole at the same site.
SolGold plans to drill five holes as part of its 2,500 metre programme in the area.
The company also said that it has entered into an agreement for a placing of 40 million shares at GBP0.075 per share to raise an additional GBP3 million following an oversubscribed placing for 9.8 million shares on Monday.
The new raising was managed and completed by SP Angel Corporate Finance LLP and was also oversubscribed.
The shares are scheduled to be allotted on September 20 and an application to have the shares admitted onto AIM by September 24 will be made shortly.
"This additional fund raising means that we will have the flexibility to enable a smooth extension of the current Phase 1 into a Phase 2 drilling program. I look forward to providing shareholders with on-going news flow over the next 3 months," Chief Executive Alan Martin said in a statement.
SolGold shares were down 7.04% to 8.25 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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