Ann: Third Profit Distribution of $2m from Cannon Mine Received, page-6

You are correct. After checking the Quarterly Activities Report, I saw a paragraph in Appendix 5B:

"Southern Gold have a $1,000,000 unsecured convertible debt facility. The agreed interest rate on the face value of $1,000,000 is 8%. Interest is paid every six months. Unless the free attaching options are exercised on or before 30 June 2017, the $1,000,000 is due to be repaid on 30 June 2017."

This was a second debt facility, which will be fully repaid with this third profit distribution.
Now, yes, SAU is truly debt-free. Bring on the drilling results!