THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO.
FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE EU REGULATION 596/2014
BISHOPSGATE, LONDON / ACCESSWIRE / November 12, 2020 / The Board of Directors of SolGold (LSE:SOLG)(TSX:SOLG) is pleased to announce that Valuestone Advisors Ltd. (the "Subscriber") has irrevocably agreed to subscribe for 11,900,000 new ordinary shares in the capital of the Company (the "Subscription Shares") at a purchase price of US$0.42 per Share, pursuant to a subscription agreement dated 12 November 2020 between the Company and the Subscriber (the "Subscription"). The Subscription Shares are expected to raise gross proceeds of approximately US$5,000,000 (approximately £3,800,000).
The Company will apply for admission of the Subscription Shares to the Official List (Standard Segment and to trading on the LSE Main Market ("UK Admission") and to the Toronto Stock Exchange (the "TSX") to list the new ordinary shares ("TSX Admission" and together with UK Admission, "Admission"). The issue of the Subscription Shares is conditional, inter alia, upon UK Admission and the approval of the Toronto Stock Exchange. It is expected that UK Admission of the Subscription Shares will occur at 8:00 am on or around 13 November 2020 and TSX Admission on or around 13 November 2020.
The Subscription Shares represent approximately 0.6 per cent. of the issued ordinary share capital of the Company following the issue of the Subscription Shares. The Subscription Shares will be issued credited as fully paid and will rank pari passu in all respects with the existing ordinary shares.
On UK Admission of the Subscription Shares the Company's issued share capital will comprise 2,084,113,494 Ordinary Shares, with no Ordinary Shares held in treasury. This figure may be used by shareholders as the denominator for calculations by which they will determine whether they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
The proceeds of the subscription will be used by the Corporation to advance the Company's 100% owned Porvenir Project located in southern Ecuador.
The Subscription Shares will be subject to a statutory hold period in Canada expected to expire on March 14, 2021.
By order of the Board
Karl Schlobohm
Company Secretary
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 ("MAR"). Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR. The person responsible for arranging release of this information on behalf of the Company is Nicholas Mather, Chief Executive Officer.
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