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UPDATE - SolGold completes £744,000 cash call for phase one drilling

Published: 06:04 16 Sep 2013 EDT

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---ADDS SHARE PRICE AND BROKER COMMENT---

SolGold (LON:SOLG) has successfully completed a £744,000 (A$1.27mln) cash call via a private placement with Australian investors.

The fundraise was done at 7.5p a share and the fresh injection of cash will go towards the phase one drilling programme on the company’s highly prospective Cascabel copper-gold project in Ecuador.

Chief executive Alan Martin said: "It is pleasing to see the strong level of interest in the company. 

“We are in the early stages of the phase one drilling programme at the Cascabel project, having completed hole one recently and with the rig now moving on to hole two.  

“Given the highly prospective nature of the Alpala prospect, I look forward to providing shareholders with on-going news flow over the next three months."

Last week SolGold reported its first drill hole at Cascabel had intersected porphyry copper mineralisation.

This early work uncovered a 111.5 metre upper section starting some 51.5 metres from surface containing various copper sulphides.

Below is what’s described as a “strongly sheeted and well-mineralised” quartz vein zone intersected over 60 metres from 225 metres. There are also some pointers towards the system being gold bearing.

The group won’t know the grades of copper and other metals contained until samples from the drill core are fully assayed.

The shares, up 130% in the last month, advanced 11% in morning trade to 9.75p.

Natural resources boutique SP Angel said: “Channel samples and an early review of the core from the drilling appear promising. 

“We look forward to receiving results from the drill programme to confirm expectations at the project.”


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