PERTH (miningweekly.com) – Junior Southern Gold has set a sales price of $.9.94-million for its 50% joint venture (JV) interests in the Gubong and Kochang gold projects, in the Republic of Korea.
The company previously announced plans to divest of its interest in the two gold projects, with JV partner Bluebird Merchant Venture earlier this year electing to acquire the assets.
In accordance with the JV agreement, the offer price has now been set at $9.94-million, with Bluebird having 60 days in which to pay this amount either through a combination of cash, equity or royalty.
Southern Gold on Monday told shareholders that the asset price implied a sale value per share of $0.047 a share, or some A$0.064 a share, compared with Southern Gold’s closing price of A$0.105c a share on November 27.
“It is good to get the price for the sale of our JV interests at Gubong and Kochang finalised. With an underlying value per share of 6.4c, it really reinforces the value investors receive from a position in Southern Gold and the relatively low implied value for the greenfield exploration play in South Korea,” said Southern Gold MD Simon Mitchell.
“We look forward to completing the sale and concentrating on building our business as we ramp up our drilling and broader exploration efforts as well as business development activities in-country. While 2020 will go down as a difficult year, the team at Southern Gold really looks forward to maintaining the discovery momentum in 2021.”