Southern Gold looks to realise value from its non-core Korean projects
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Special Report: Southern Gold is looking to monetise its interests in the non-core Gubong and Kochang joint venture projects in South Korea.
As an initial step, the company has offered its 50 per cent stakes in the two projects to its joint venture partner London Stock Exchange (LSE)-listed Bluebird Merchant Ventures (BMV).
Should a sale to BMV not proceed, Southern Gold (ASX:SAU) will consider a partial or full sale of the assets to third parties or the possibility of listing or vending them into another company that would be listed on an alternative stock exchange, such as the LSE.
Managing director Simon Mitchell said that while the company’s core business was its fully owned exploration portfolio, the JV interests in Gubong and Kochang represented an opportunity to potentially release value for the company.
“We can now initiate a process whereby we can test the BMV or other investor appetite for an interest in the two gold projects while continuing to focus on our discovery initiative through our intensive drill program,” he said.
The company triggered the offer to sell its interests after electing not to vote in favour of either the program or budget for FY2021 as well as the formal submission for a proposal to redevelop.
Southern Gold decided not to proceed with the redevelopment proposal due to expected timing issues around county government approvals.
The company is currently awaiting assays from four diamond holes that it drilled recently at its wholly owned Aphae project.
The first three holes intersected sulphide and silica flooded vein breccia and base metal sulphide veining, the last of which hit a wider than expected sulphide-rich zone that resulted in a fourth hole being drilled.