- SolGold has announced that the Company has raised $41.23m via the placing of 78,889,080 new ordinary shares at 41p each.

The total includes a placement of $40m to Newcrest International, a subsidiary of Newcrest Mining, an existing 10% shareholder of SolGold. The new investment is estimated to take their shareholding position in SolGold to 14.54%.

In addition, $1.23m has been placed with Ecuadorian investors further endorsing the Cascabel Project and SolGold's pan-Ecuadorian copper-gold porphyry exploration strategy.

As part of securing this placement, SolGold has agreed to a revision to the subscription agreement with Newcrest Mining to include an anti-dilutionary right to participate in any new equity raisings for 12 months at a level of 14.54%. After this 12 month term, the terms of the original subscription agreement with Newcrest dated 30 August 2016 continue, providing Newcrest with anti-dilutionary rights at a 10% level until 30 August 2019.

The agreement also provides that Newcrest agrees to support certain transactions including change of control transactions in SolGold which are recommended by the Board, supported by an independent evaluation, and by not less than 60% of the Company in acceptances or at a General Meeting of shareholders.

The Company said the funds raised will be used for the continued exploration of the Cascabel Project, general working capital and SolGold's pan Ecuadorean exploration strategy.

Commenting on the agreement, SolGold's CEO Mr Nick Mather said:

"The arrangement with Newcrest, particularly in the area of technical liaison over the past 6 months since their original investment into SolGold, has been pleasingly smooth and the SolGold Board and management are encouraged by this further endorsement of the technical merits & management's commitment to the Cascabel project, SolGold's exploration strategy across Ecuador and SolGold's interests generally.

At 1:01pm: [LON:SOLG] SolGold PLC share price was +2.88p at 38.38p

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