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- Southern Gold (SAU) has placed its shares in a trading halt as it gets ready to announce another capital raise, its second in the last six months
- The company announced a $10 million placement back in February, but had to scrap the offer due to COVID-19-related market uncertainty
- Instead, a revised $4 million equity raise was undertaken by the company, who received commitments from both business and shareholders
- Shares in Southern Gold will remain locked up until September 3
- The company originally planned to have the trading halt expire on September 1 but extended the halt this morning
- Shares in SAU last traded for 13.5 cents per share
Gold explorer Southern Gold (SAU) has placed its shares in an extended trading halt as it gears up to announce another capital raise, its second in six months.
The details of the capital raise, including the amount the company plans to raise, what form it will take and where the funds will go, will all be revealed when an announcement is made next week.
The trading halt was due to expire on September 1, but Southern Gold applied for the freeze to last an additional two days to September 3. So, shares in the company will remain locked up until an announcement is made, or until next Thursday.
Today’s capital raise is the third undertaken by the company since the start of the year. Southern Gold first tapped investors for $10 million via a placement back in February.
However, the capital raise was abandoned and revised amid COVID-19 related market uncertainty. Instead, Southern Gold announced it would raise $4 million through a new placement to both business and shareholders.
The last time shares traded, which was on August 27, shares in Southern Gold were priced at 13.5 cents each.
