Strong Support for Mt Adrah Funding
Sydney, Aug 16, 2013 AEST (ABN Newswire) - Sovereign Gold Company Limited (
ASX:SOC) (Sovereign Gold) advises that is has completed the placement of 8 million fully paid ordinary shares (5.6% of its issued capital) at 20 cents per share to institutional and sophisticated investors, as defined under Section 708 of the Corporations Act, raising $1.6 million before costs.
Sovereign Gold Company's Managing Director Mr Michael Leu said: "This successful equity raising is an encouraging validation of the potential of the Mt Adrah Gold project.
"The funds secured will fund the next major growth phase at Mount Adrah.
"They will primarily be used to complete the next two drill holes on Hobbs Pipe 1 and commence exploration for further pipes at the Mt Adrah Gold Project. All in the current quarter!"
The Lead Managers to the placement were Paradigm Securities Pty Ltd and Blue Ocean Equities Pty Ltd.
The funds raised will be used to finance ongoing exploration expenditure, primarily focussed at expanding the estimated Resource at the Company's Mt Adrah project, together with working capital.
The shares were issued under Sovereign Gold's 15% placement capacity as provided for under Listing Rule 7.1 to institutions and sophisticated investors.
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.
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