WHAT DOES IT MEAN FOR OLD SHAREHOLDERS ???? Austral Gold to invest C$9.3 million
in Goldrock Mines Limited
Austral Gold to subscribe up to 11,560,000 new shares in TSX-V listed Goldrock Mines Corp
Limited
Austral Gold will hold up to 15% equity stake in Goldrock Mines Corp Limited (“Goldrock”)
Placement made at C$0.80 per share
Austral Gold also to be issued 1 new warrant for each new share subscribed at C$0.80
exercise price
Goldrock Mines Corp’s flagship asset is the 1.52 Moz gold Lindero project in Argentina
Transaction marks the next step in creating a leading South American-focused resource
company
The Directors of Austral Gold Limited (ASX: AGD) are pleased to announce that the company has
entered into a Subscription Agreement with Goldrock Mines Corp Limited (TSX-V: GRM) (“Goldrock”)
where Austral Gold will subscribe for up to 11,560,000 new shares at C$0.80 per share for a total
consideration of C$9.3 million. As part of the Subscription Agreement, Austral Gold will also be issued 1
new warrant for every new share subscribed with the warrants having a strike price of C$0.80 per
warrant for a period of 60 month from closing.
Upon completion of the Subscription Agreement, which is anticipated to be closed by 31 October 2013,
Austral Gold will hold up to 15% of Goldrock and will have the right to appoint one non-executive director
to Goldrock’s Board and one member to Goldrock’s technical committee. Chad Williams, our consultant
in Canada with wide experience in the Canadian market and mining sector, will be our nominee to
Goldrock´s Board, while AGD Director, Stabro Kasaneva, who leads our management team with an
impressive track record in mine construction and development, will be designated as a member of
Goldrock´s Technical Committee.
In addition, the subscription agreement grants pre-emptive or anti-dilution rights to AGD, entitling AGD to
participate in any future sales or equity offerings to maintain its pro-rata shareholding. With this
investment, AGD will become the largest shareholder of Goldrock.
Goldrock holds 100% of the Lindero gold project located in northwest Argentina (Salta Province). The
project has proven and probable mineral reserves of 65.5Mt grading 0.72 g/t gold for 1.52 million ounces
of contained gold and a NPV of US$215 million based on a Feasibility Study completed in May 2013
based on a gold price of $1,400/oz.