CITIC And Talbot Take Stake in Southern Gold Limited Adelaide, Australia, Oct 25, 2006 - (ACN Newswire) - China's appetite for participation in Australia's resources exploration sector continues with an announcement today that the giant CITIC group is taking a 7.5% interest in Adelaide-based gold and uranium explorer, Southern Gold Limited (ASX: SAU) Joining CITIC in an additional and equally sized stake on Southern Gold's share register is Queensland private investment group, Talbot Holdings Limited. The total share placement of 8.9 million ordinary fully paid shares at $0.25 per share to raise $2.25 million will be made, subject to shareholder approval, to CITIC Australia Pty Ltd and Talbot Group Holdings. The investment represents a total 15% interest in the enlarged capital of Southern Gold, which will now have 59.3 million shares on issue. "This is a highly welcome milestone," Southern Gold's Managing Director, Mr Stephen Biggins, said today. "It provides the Company with solid capital support and substantially enhances our capacity to now aggressively advance our highly prospective projects," Mr Biggins said. "The proceeds will be applied primarily to accelerate our flagship uranium and copper/gold exploration targets in South Australia, and also to further exploration of our gold and base metal projects elsewhere, including New South Wales and southeast Australia." CITIC Australia is a wholly-owned subsidiary of the CITIC Group, one of China's largest state-owned companies. With assets in excess of US$100 billion, CITIC's activities include banking and financial businesses, industrial investments (including those in the energy and raw materials sectors) and international trade. It is headquartered in Beijing. Other CITIC subsidiaries in Australia boast total assets and annual sales of more than A$1 billion. These are generated from operations which include: - A 22.5% interest in the Portland Aluminium Smelter Joint Venture in Victoria - An 11.62% shareholding in Macarthur Coal Limited - A 7% direct interest in the Coppabella/Moorvale Coal Joint Venture - A 78% shareholding in ASX-listed CITIC Australia Trading Limited, and - Interests in a series of exploration projects. CITIC's investment in Southern Gold is subject to approval from the Foreign Investment Review Board. The private Talbot Group is a Queensland-owned and operated Investment Group focusing on the resource sector. Its asset base is in excess of A$450 million and its activities include minerals exploration, mine and market development and financial investments. Investments include a substantial property and share portfolio. About CITIC PACIFIC: CITIC Pacific is incorporated in Hong Kong and publicly traded on the Hong Kong Stock Exchange. CITIC Pacific's largest shareholder is CITIC Hong Kong (Holdings) Ltd., a wholly owned subsidiary of CITIC in Beijing, Peoples' Republic of China. Ownership CITIC Hong Kong - 28.8% Management - 25.3% Private and Institutional - 45.9% About Field Public Relations: Field Public Relations provides leading edge communications advice to a broad range of clients - drawing on 20 years experience at the forefront of Australian media and public relations. The consultancy's expertise covers all aspects of communication strategies. Source: Field Public Relations Contact: Kevin Skinner Senior Consultant FIELD PUBLIC RELATIONS 231 South Road MILE END SA 5031 Tel: (08) 8234 9555 Fax: (08) 8234 9566 Mob: 0414 822 631 firstname.lastname@example.org Copyright (C) 2006 ACN Newswire. All rights reserved. Provider ID: 00033702
CITIC And Talbot Take Stake in Southern Gold Limited
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