China takes stake in S.A. gold-uranium explorer
Posted: 25 October 2006
China’s appetite for participation in Australia's resources exploration sector continues with the giant CITIC group taking a 7.5 per cent interest in Adelaide-based gold and uranium explorer, Southern Gold Limited.
Joining CITIC in an additional and equally sized stake on Southern Gold’s share register is Queensland private investment group, Talbot Holdings Limited.
The total share placement of 8.9 million ordinary fully paid shares at $0.25 per share to raise $2.25 million will be made, subject to shareholder approval, to CITIC Australia Pty Ltd and Talbot Group Holdings.
The investment represents a total 15 per cent interest in the enlarged capital of Southern Gold, which will now have 59.3 million shares on issue.
“This is a highly welcome milestone,” Southern Gold’s Managing Director, Mr Stephen Biggins, said today.
“It provides the Company with solid capital support and substantially enhances our capacity to now aggressively advance our highly prospective projects,” Mr Biggins said.
“The proceeds will be applied primarily to accelerate our flagship uranium and copper/gold exploration targets in South Australia, and also to further exploration of our gold and base metal projects elsewhere, including New South Wales and southeast Australia.”