Metal Tiger buys another 3m shares in Southern Gold

Natural resource opportunities investor Metal Tiger announced on Monday that it has purchased three million shares in ASX-listed Southern Gold at an average price before costs of 7.5 Australian cents per share, for a total consideration of AUD 0.23m (£0.13m).

The AIM-traded firm said following the investment, it would be interested in 40,794,000 Southern Gold shares, representing about 19.1% of the company’s issued share capital, and 7,284,500 two-year, 18 Australian cent warrants.

“Southern Gold owns 100% of a substantial portfolio of high-grade gold projects in South Korea that are largely greenfield epithermal gold-silver targets in the south-west of the country,” the Metal Tiger board said in its statement.

“Backed by a first-class technical team, Southern Gold’s aim is to find tier one epithermal gold-silver deposits in a jurisdiction that has seen very little modern exploration.”

For the half-year ended 30 December, Southern Gold reported a loss before tax of AUD 1.1m, and net assets of AUD 19.1m.

Michael McNeilly, Metal Tiger’s chief executive officer, is a non-executive director of Southern Gold.

At 1115 BST, shares in Metal Tiger were down 2.29% at 31.27p.