Initial Public Offering (IPO) for Mount Adrah
Sydney, Mar 31, 2014 AEST (ABN Newswire) - Sovereign Gold Limited (Sovereign Gold) (
ASX:SOC) is proposing to spin-out Mount Adrah Gold Limited (formerly Gossan Hill Gold Limited), (Mount Adrah), a 72% owned subsidiary Sovereign Gold. Mount Adrah Gold has a portfolio of highly prospective gold projects in New South Wales, Australia at the Mount Adrah Gold Project.
Exploration aims to locate a major gold deposit, with a principal focus on the Mount Adrah Gold area where the JORC Code compliant Mineral Resource estimate is 770,000 ounces of gold (440,000 oz Indicated; 330,000 oz Inferred), within a total Mineral Resource estimate of 20.5 Mt at 1.1 g/t gold, at various cut-off grades.
"The spin-out will provide dedicated resources and focus for the accelerated exploration and development of the Mount Adrah Gold Project," Mount Adrah CEO, Julian Malnic said.
Initial Public Offering
The Mount Adrah IPO is for 10,000,000 Shares at an issue price of $0.20 per Share to raise a minimum of $2,000,000; additionally the Company may accept over-subscriptions for up to 5,000,000 Shares to raise up to a further $1,000,000.
Sovereign Gold currently holds 41,825,000 shares in Mount Adrah.
All Sovereign Gold shareholders holding at least a Marketable Parcel of Sovereign Gold shares at the Record Date (yet to be set) will be eligible to apply for shares in a priority offer, with a guaranteed allocation of shares in Mount Adrah.
Julian Malnic Appointed Managing Director
Julian Malnic, a director of Sovereign Gold has been appointed Managing Director of Mount Adrah.
Julian Malnic is a professional geologist and company builder whose career spans a wide range of industry activity including exploration (specialising in gold), mine assessment, corporate management and development, and industry media.
In 1995, Julian founded Nautilus Minerals (listed on the Toronto and London exchanges) the world's first company to be granted exploration licences to newly discovered, high-grade seafloor massive sulphide deposits.
Julian subsequently founded Direct Nickel (DNi) in 2005 after having identified the potential of precursor technologies for the Direct Nickel Process which it has successfully developed for treating nickel laterites.
He worked as Executive Chairman of DNi until Sept 2012 and led the DNi team in developing the DNi Process. The company has successfully tested a wide array of ore types, confirmed the process's efficient and wide spectrum capabilities, and forged strong technical and financial partnerships with Teck Resources Limited, PT Antam, and the CSIRO.
The Offer of the securities will be made in a prospectus to be lodged with ASIC during April 2014. To subscribe for Shares, applicants will need to complete the application form that is in, or accompanies, the prospectus.
In deciding whether to acquire the Shares, applicants should read the prospectus carefully, and if necessary seek their own taxation and investment advice.
The prospectus, including the application form, once lodged with the ASIC, will be able to be viewed and downloaded at www.adrah.com.au.
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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