AKBC member Southern Gold Limited has entered into a binding legal agreement with Ausino Drilling Services Pty Ltd (ADS) to support the delivery of mining exploration drilling in Korea. The four-year partnership “will help build the position of both companies in South Korea and ensure a high standard of drilling at a competitive price,” said Simon Mitchell, Managing Director of Southern Gold.
Provisions of the agreement include:
– ADS will set up corporate entities and operational capabilities in Korea, aiming to directly support Southern Gold’s exploration drilling activities; and
– Southern Gold will grant ADS 10 million performance rights (US$0.11/right or A$0.155/right), subject to shareholders’ approval.
ADS’ General Manger Campbell Powell stated that: “We can’t wait to get into the country to lift Southern Gold’s drilling capabilities to another level. The potential into the medium term is also huge as we’re convinced South Korea is the next big play in North Asia.”
Southern Gold is a gold explorer and producer, owning a portfolio of high-grade gold projects in Korea.
ADS is a privately-owned contract drilling company based in Adelaide and Perth and operating in China.
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