Solomon Gold to raise £800,000 to help progress projects outside Newmont JV remit

Solomon Gold PLC (AIM: SOLG) said it is planning to raise £800,000 through a placing of 10 million shares at 8 pence each and will use the money for working capital purposes and to progress the project areas outside the tenements which are the subject of the March 2009 joint venture agreement with a subsidiary of Newmont Mining Corp (NYSE:NEM).

The company said it has already entered agreements for placing the shares which are to be admitted by July 27.

Solomon Gold's main project continues to be the Guadalcanal venture with Newmont Ventures Ltd, exploring for giant copper gold ore bodies on the main island of Solomon Islands, Guadalcanal.

The joint venture will see Newmont earn up to a 51 percent interest in five licences by expending US$6 million over 3 years for the Stage 1 earn-in. Assuming Newmont completes its obligations and elects to take the 51 percent interest, it will then have an option to expend a further US$6 million over a further 2 year period to increase its interest to 70 percent.

Solomon Gold continues to hold a 100 percent interest in the gold project exploration licence on Fauro Island near Bougainville, and nickel exploration tenements on Ngella Island in the Florida island group north of Honiara, and on eastern Guadalcanal.

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