DGR Global Limited (ASX:DGR), a company that creates resource exploration, development and mining companies by identifying resource projects, has announced the receipt of the first tranche of proceeds from the sale of its interest in Solgold to Jiangxi Copper (Hong Kong) Investment Company Limited. The sale was completed at 28 pence per SolGold share. DGR Global’s directors have confirmed the successful receipt of funds relating to the initial tranche of shares held directly by the company.
The company has used the initial proceeds to repay its loan facility with Samuel. After the repayment, DGR Global reports net proceeds of approximately $45 million. The company anticipates receiving the proceeds from the second tranche of shares early in April. These funds are expected to be received net of the repayment of Equities First loan facilities.
DGR Global estimates that it will receive an additional $23 million from the second tranche of shares, subject to exchange rate fluctuations. The board is currently evaluating the outcomes of the settlement and determining the best use of the received funds.
The company has stated it will provide a market update once this review is complete and decisions have been finalised. This announcement has been authorised for release by the Board of DGR Global Ltd.
