25 Aug Southern Gold and ADS sign exploration agreement in South Korea
ASX-listed explorer Southern Gold has entered into a strategic partnership with Ausino Drilling Services (ADS) for the delivery of mineral exploration drilling in South Korea.
The companies announced that a binding legal agreement had been executed which outlines several provisions, including the issue of US$1.1 million worth of performance rights to ADS by Southern Gold.
The performance rights will vest to ADS on delivery of the services and will accumulate until $110,000 in value is satisfied, before the shares are issued to ADS and will offset a maximum of $1.1 million of a total of $4.4 million of drilling services.
Southern Gold is searching for ‘world-class’ gold-silver deposits in South Korea, while ADS is a privately-owned Australian contract drilling company with operations in the People’s Republic of China.
“It is great to have ADS on board in South Korea,” said Southern Gold’s managing director Simon Mitchell. “They have been assisting Southern Gold with local contractors for the past 12 months or so and this has lifted core recovery to more than 95% and productivity at the rig has almost tripled.
“This deal will help build the position of both companies in South Korea and ensure a very high standard of drilling is attained for a competitive cost and on a shared risk basis,” he added.