Adelaide, Oct 25, 2006 AEST (ABN Newswire) - China's appetite for participation in Australia's resources exploration sector continues with an announcement today that the giant CITIC group is taking a 7.5% interest in Adelaide-based gold and uranium explorer, Southern Gold Limited (ASX: SAU)
Joining CITIC in an additional and equally sized stake on Southern Gold's share register is Queensland private investment group, Talbot Holdings Limited.
The total share placement of 8.9 million ordinary fully paid shares at $0.25 per share to raise $2.25 million will be made, subject to shareholder approval, to CITIC Australia Pty Ltd and Talbot Group Holdings.
The investment represents a total 15% interest in the enlarged capital of Southern Gold, which will now have 59.3 million shares on issue.
"This is a highly welcome milestone," Southern Gold's Managing Director, Mr Stephen Biggins, said today.
"It provides the Company with solid capital support and substantially enhances our capacity to now aggressively advance our highly prospective projects," Mr Biggins said.
"The proceeds will be applied primarily to accelerate our flagship uranium and copper/gold exploration targets in South Australia, and also to further exploration of our gold and base metal projects elsewhere, including New South Wales and southeast Australia."
CITIC Australia is a wholly-owned subsidiary of the CITIC Group, one of China's largest state-owned companies. With assets in excess of US$100 billion, CITIC's activities include banking and financial businesses, industrial investments (including those in the energy and raw materials sectors) and international trade. It is headquartered in Beijing.
Other CITIC subsidiaries in Australia boast total assets and annual sales of more than A$1 billion.
These are generated from operations which include:
- A 22.5% interest in the Portland Aluminium Smelter Joint Venture in Victoria
- An 11.62% shareholding in Macarthur Coal Limited
- A 7% direct interest in the Coppabella/Moorvale Coal Joint Venture
- A 78% shareholding in ASX-listed CITIC Australia Trading Limited, and
- Interests in a series of exploration projects.
CITIC's investment in Southern Gold is subject to approval from the Foreign Investment Review Board.
The private Talbot Group is a Queensland-owned and operated Investment Group focusing on the resource sector. Its asset base is in excess of A$450 million and its activities include minerals exploration, mine and market development and financial investments. Investments include a substantial property and share portfolio.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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