Southern Gold Limited (ASX:SAU) has received applications for a total of 28,639,444 new shares in its one-for-three fully underwritten non-renounceable rights issue which closed July 18.
Applications received comprised 11,894794 shareholder entitlements and 16,744,650 shortfall shares.
Southern Gold directors will apply a scale-back for the 7,783,320 oversubscribed shortfall offer for new shares, in accordance with the allocation policy outlined in the prospectus.
Shortfall shares, subject to a scale-back, will be issued on the same date the company issues and allots the entitlement applications.
Southern Gold recently discovered two high-grade gold and silver outcrops within 500 metres of each other, collectively referred to as the Golden Surprise Trend, at its 100%-owned Deokon Project in South Korea.
Assay results from samples taken from both zones returned grades of up to 53.9 g/t gold and 6,240 g/t silver.
The sampling program collected 112 new samples with results highlighting multiple untested vein systems in addition to historical mine workings.
The project has good potential to host a high-quality gold-silver epithermal mineralisation system with multiple vein zone targets identified across several square kilometres of project area.