Quarterly Activities Report
Sydney, Oct 31, 2013 AEST (ABN Newswire) - Sovereign Gold Company Limited (
ASX:SOC) quarterly operations report is dated 31 October 2013 and is for the three months ending 30 September 2013.
Corporate
On 11 July 2013 Sovereign Gold Company Limited (Sovereign Gold) provided funding of $525,000 to it's subsidiary, Gossan Hill Gold Limited (Gossan Hill) through the sale of 1.5 million Precious Metal Resources Limited (PMR) shares to professional and sophisticated investors, Sovereign Gold's equity position in PMR reduced from 81.2% to 79.5%.
On 17 July 2013 Gossan Hill entered into a Farm in and JV agreement with PMR with respect to the Peel Fault Gold project located near Tamworth. PMR is able to earn a 70% interest through sole funding exploration expenditure up to $1 million over 3 1/2 years.
On 26 August 2013 Sovereign Gold raised $1.6 million before costs from the issue of 8.152 million new shares at 20 cents each for working capital to fund further exploration of Gossan Hill's Mt Adrah gold project.
Gossan Hill Gold Limited
Gossan Hill 2013 exploration program fully funded (ASX 9 October 2013)
Gossan Hill entered into a share subscription and option agreement (Subscription Agreement) with ICP Ltd., a company listed on the Catalist board of the Singapore Exchange Securities Trading Limited, through its wholly owned subsidiary, AceA Resources Pte. Ltd (AceA).
Gossan Hill currently has 96 million shares on issue. Gossan Hill shareholders will be asked to approve a pro-rata issue to increase this to 192 million shares prior to completion of the Proposed Subscription.
Under the Subscription Agreement, AceA will subscribe for 40 million new ordinary shares (Subscription Shares) representing 17.2% of the enlarged share capital of Gossan Hill, at a subscription price of A$0.05 (Subscription Price) for each Subscription Share (Proposed Subscription) for a total A$2,000,000.
Pursuant to the terms of the Subscription Agreement, upon completion of the Proposed Subscription, AceA will be granted 40 million options (Option), entitling AceA to subscribe for an aggregate 40 million new ordinary shares (Option Shares) in the capital of Gossan Hill at A$0.10 (Exercise Price) per Option Share. The Option is exercisable to the end of 3 years from completion of the Proposed Subscription. Exercise of the Options would provide an additional A$4 million of funding to Gossan Hill.
Sovereign Gold currently holds 87% of Gossan Hill. All options will have an exercise price of A$0.10 with a term of 3 years from Completion. Exercise of all the options would provide A$13.8 million of funding to Gossan Hill.
Separately, Sovereign Gold has entered into a put option agreement with AceA, whereby AceA, at any time during the one month period commencing 1 December 2013, can require Sovereign Gold to purchase from AceA the Subscription Shares and the Option at the exercise price of A$2,000,000. This is to enable AceA to complete due diligence to its satisfaction.
Exploration Highlights
- Gossan Hill 2013 exploration program fully funded
- Increase in Hobbs Pipe 1 JORC resource estimate to 650,000 ounces gold (1.23 g/t) @ 0.75 g/t cutoff
- 3DIP undertaken, completed in early October
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-765025.pdf
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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