New Zealand Exchange Limited
P.O. Box 2959
7 March 2011
King Solomon Mines issues progress report on two fronts
China based King Solomon Mines (“KSO”) is one of Widespread’s cornerstone investments, and represents 10.7% of our total assets at its present market value of AUD 8.7 cents a share. We are the largest individual shareholder in KSO with a holding of 8%.
KSO today made the announcement below. The company is now achieving quite some momentum on the fundraising front and is about to embark on follow up work to last season’s promising exploration results.
For and on behalf of the Board,
Chris D Castle
Toronto, 7 March 2011
King Solomon has secured the 3 rigs that it requires for its drill program over the next 3 months.
These include a deep drilling diamond rig for the 2 planned holes (approximately 1,000 m each) at the Whitehorse prospect (Bu Dun Hua Porphyry Copper project). Drilling is planned to commence around 15 March.
A second diamond rig will drill approximately 2,400 m at the Mud-house prospect (Sonid North Gold project) commencing around 20 March.
An RC rig will drill approximately 2,200 m at Mud-house before moving to Bu Dun Hua to drill around 5,000 m to test the 5 prospects identified in the previously released magnetic survey. The RC rig is expected to commence drilling late this month.
Initial results from the RC drilling are expected to be reported in the March quarterly report planned to be released in late April.
The company has raised a total of $3.1million from placements undertaken by Bell Potter Securities Limited in November and February. Funds raised from these placements and through the Share Purchase Plan will be applied to the drilling program referred to above and will enable immediate follow up of all positive results during the current field season
In February, shareholders were sent an offer to participate in a Share Purchase Plan at a price of $0.07 per share up to a maximum of 214,286 shares. Directors are pleased with the response with 7 business days to go.
The offer will close on 15 March.
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