Sovereign spins out Mount Adrah subsidiary
PERTH (miningweekly.com) – Gold miner Sovereign Gold on Monday announced that it would spin out its subsidiary Mount Adrah Gold into a separately listed company during the second quarter of the year.
Mount Adrah, which is 72% held by Sovereign Gold, has a portfolio of prospecting gold projects in New South Wales.
“The spin-out will provide dedicated resources and focus for the accelerated exploration and development of the Mount Adrah gold project,” said Mount Adrah CEO Julian Malnic.
The Mount Adrah gold area currently has a Joint Ore Reserves Committee-compliant resource of 770 000 oz of gold, within a total mineral resource of 20.5-million tonnes, grading 1.1 g/t gold, at various cutoff grades.
Some ten-million shares would be placed in an initial public offer, at a price of 20c a share, to raise a minimum of A$2-million. Further, Sovereign would accept over-subscriptions for up to five-million shares, to raise a further A$1-million.
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