Sydney, Australia, June 30, 2014 - (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 gold exploration and development company that holds a highly prospective tenement package, for Intrusion-Related Gold Systems (IRGS), in New South Wales, Australia. Sovereign Gold holds 11 Exploration Licences covering over 3,240km2 near Armidale in NSW, including the historic Rocky River-Uralla Goldfields. Sovereign Gold's aggressive exploration program in several of these licence areas is funded via a joint venture (at the tenement level) with Jiangsu Geology & Engineering Co Ltd (SUGEC), a major Chinese State-owned geology enterprise. The other area of focus is the Mt. Adrah Project, approximately 50km southeast of the regional NSW centre of Wagga Wagga and 23km northwest of the historic mining district of Adelong, via an 87% interest in unlisted Gossan Hill Gold Limited. This area contains the recently discovered, world-class, Hobbs IRGS deposit which is currently under evaluation.
Sovereign Gold Co Ltd