Phnom Penh - A positive site visit to Cambodia to view exploration operations and the investment climate has prompted Australia's Macquarie Bank Ltd to up its shareholding in Southern Gold Ltd, the mining company said in a statement Tuesday. "This investment follows Macquarie Bank recently completing a positive site visit to Cambodia to review Southern Gold's projects, exploration operations and the investment environment in Cambodia," Southern Gold Ltd said in a statement to the ASX.
The Adelaide-based gold and base metals mining company said Macquarie Bank Ltd had raised its shareholding to 4.7 per cent though a new placement which raised 3.6 million Australian dollars (3.1 million US dollars) in cash.
Southern Gold Ltd allocated approximately 9.3 million ordinary shares at a price of 39 cents (34 US cents) per share to raise the proceeds and will have approximately 94 million shares on issue on completion of the placement, it said.
It said a number of European investors participated in the placement, including Gold 2000, a Zurich-based investment fund.
Southern Gold Ltd announced it had commenced first drilling on its eight tenements in Cambodia for high grade gold and base metals on November 28.
Maquarie Bank's parent, The Macquarie group, describes itself on its website as "a diversified international provider of banking, financial, advisory and investment services, headquartered in Sydney, Australia," employing 11,000 people in 25 countries.
Another Australian mining giant, Oxiana, has tenements adjacent to Southern Gold's in north-eastern Kratie province but is yet to announce first drilling.
