The natural resources investment firm said it has subscribed for 14.5mln new shares in Southern Gold at a price of A$0.12 each for a total of A$1.74mln, the group has also received 7.28mln 2-year warrants with an exercise price of A$0.18 each.
The fundraising is cornerstoned by strategic investor Crescat Capital, which is advised by Quinton Hennigh, the director of, and technical advisor to, Irving Resources as well as chief executive of Novo Resources and a director of TriStar Gold, Precipitate Gold and NV Gold.
Metal Tiger said Southern Gold plans to use the proceeds of the fundraising to execute multiple drilling campaigns on multiple targets in its growing gold-silver project portfolio in South Korea over the next two years.
“We consider today’s fundraise by Southern Gold to not only support Metal Tiger’s investment thesis but to also validate our belief that the company would attract significant international, institutional support. Alongside support from investors in North America and Australia, we are also pleased to note that there was strong interest from investors based in Asia”, Metal Tiger chief executive Michael McNeilly said in a statement.
“We are pleased to see Southern Gold raise significant firepower and attract, what we consider to be, the type of investors required to support the long-term development of its portfolio and, ultimately, to drill test the geological potential of South Korea. Furthermore, we believe that, with this latest fundraise, the barriers to entry to prospective explorers looking to gain a foothold in South Korea will become even higher as Southern Gold progresses its exploration programmes. As such, should a significant gold discovery be made, we expect Southern Gold to have a strategic market and in-country advantage over potential competitors”, he added.
Metal Tiger shares rose 1.4% to 28.1p in early deals on Thursday.