Major Shareholder Acquires Mount Adrah Stake
Sydney, June 30, 2014 AEST (ABN Newswire) - Sovereign Gold Co Ltd (Sovereign Gold) (ASX:SOC) advises that Hudson Resources Limited (ASX:HRS) (Hudson) has acquired a 17.2% holding in Mount Adrah Gold Limited (Mount Adrah), a subsidiary of Sovereign Gold.
Hudson completed the acquisition of 10 million shares and 10 million options in Mount Adrah from AceA Resources Pte Ltd for $2 million (20 cents per share). Mount Adrah has 58 million shares on issue, giving a value to Mount Adrah of $11.6 million based on the acquisition price.
Hudson holds 40 million shares in Sovereign Gold representing a 25.5% interest.
"We are very encouraged by this display of confidence by Hudson, which have maintained their position in Sovereign Gold since its IPO back in 2011", said Michael Leu, Sovereign Gold CEO.
"Mount Adrah is Sovereign Gold's flagship project, and Hudson taking such a strong position bodes well for its future prospects."
Sovereign Gold and Precious Metal Resources Ltd (ASX:PMR) announced a proposed corporate restructuring to rationalise and simplify the structure and assets of each company (ASX 9 April 2014). The meeting for shareholders to approve the restructure is expected to be held in the current quarter.
To view the post restructure interests figure and the release, please visit:
About Sovereign Gold Company Limited
Sovereign Gold Co Ltd (ASX:SOC) is an Australian-based specialist gold exploration company. Sovereign Gold has a portfolio of quality tenements located in Eastern Australia where there is known potential for the occurrence of Intrusion-Related Gold Systems (IRGS). Sovereign Gold has a highly prospective tenement package covering the Rocky River-Uralla Goldfield, 21km southwest of Armidale, NSW, Australia. Sovereign owns the recent Mt Adrah Hobbs IRGS discovery south-east of Wagga Wagga, NSW.
Sovereign Gold Company Limited
Hudson Resources Limited
Frontier Capital Group