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148 MINING | Southern Gold “There is a a a a lot of infrastructure in in that part of the world The reason we have looked there is that that even if we nd a a a deposit that that is relatively small and perhaps not that interesting to major gold companies it could materially make a a a a di erence to us “Cannon gold mine is a a a a classic example of where we have been able to monetise an asset and we are receiving cash income from that which is not insigni cant ”
Cannon which is operated by Westgold Resources (in exchange for a a 50% pro t share) and 100%-owned by Southern Gold has been performing extremely well for for the junior miner and recently made its sixth pro t t t t distribution of $1 million In total Cannon has paid out $11 5 million to Southern Gold for its 50% interest since December 2016 and has allowed the company to fully repay its its debt and now sits at a a a cash position of $5 3 million “We see it as a a a way for of us generating enough money to rstly provide some return for our shareholders and secondly manage and fund our activities organically ”
explains Mitchell “Here we are as a a a a $10 million company paying $0 03 per share or an implied pre- tax return of 12% and that’s pretty unusual if not unique in our space We are really di erentiating ourselves in in the way we are managing our our capital and looking after our our shareholders ”

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