Sovereign Gold Company Ltd.: Mount Adrah IPO Opens; Corporate Restructure; AU$2 Million Uralla Drilling Programme Underway

Sydney - Sovereign Gold Company Ltd. (ASX:SOC) (Sovereign Gold) has embarked on a substantial asset rationalisation and Corporate Restructure. Upon the successful completion of the Corporate Restructure currently being undertaken by Sovereign Gold, through an effective rationalisation and simplification of the asset portfolio, the intrinsic value of the Company will be highlighted and significantly more transparent. The rationalisation will deliver a simpler and more efficient corporate structure. Shareholders will consider the Corporate Restructure at a general meeting to be convened.


Highlights

Mt Adrah Gold Limited (SOC 57-62%)

- IPO Offer Open; - Priority Offer to Sovereign Gold Shareholders

- Current Mineral Resource estimate at Hobbs Pipe 1 is 770,000oz of gold (440,000oz Indicated; 330,000oz Inferred), within a total Mineral Resource estimate of 20.5 Mt at 1.1 g/t gold, at various cut-off grades1.

- Immediate focus on a cost effective exploration and mine development program.

- Multiple additional targets have already been identified at the Hobbs Gold Project for further evaluation.


Sugec JV (SOC ~55%)

- Sugec spending a balance of $17 million on exploration to earn 30% in the Joint Venture (JV) areas. $2 million balance currently under JV agreements, $15 million under MoU

- Advanced discussions are underway to convert MoUs to JVs.

Diagram and table regarding Post Restructure Interests can be viewed at the link below.


Mount Adrah Gold IPO

The Mount Adrah Gold Ltd. (ASX:MTL) IPO Offer opened on 23 April 2014.

MTL is offering for subscription 10,000,000 shares at an issue price of $0.20 per share to raise $2 million. MTL may accept over-subscriptions for up to 5,000,000 shares to raise up to a further $1,000,000 (a total of $3,000,000).


Priority Offer

Sovereign Gold shareholders holding at least a Marketable Parcel of Sovereign Gold shares at the Record Date (10 April 2014) are eligible to apply for shares in a Priority Offer, whereby they will be guaranteed an allotment of 10,000 shares in MTL (upon payment of $2,000) (any further allocation will be at the discretion of the Directors).

The target date for listing on the ASX is 6 June 2014.

The Offer is scheduled to close on 21 May 2014; however the directors of MTL may at their own discretion and subject to their statutory obligations alter this date at any time by extending the period of the Offer or bringing forward the close of the Offer. Applications received after the close of the Offer will not be considered.


Applications

All applications for Securities must be made on the Application Form attached to or accompanying the Prospectus, lodged with ASIC on 4 April 2014 (a supplementary Prospectus was lodged by Mount Adrah on 15 April 2014). The Application Form contains detailed instructions on how it is to be completed.


Sugec Joint Venture

Upon completion of the proposed Corporate Restructure, Sovereign Gold will continue to be partnered with Jiangsu Geology and Engineering Co. Ltd. (SUGEC), a major Chinese State-owned enterprise, focussing on exploring for large Intrusion-Related Gold Systems (IRGS) over the Sugec Project Tenements, covering 2,463 km2 in the Rocky River-Uralla Goldfields and Halls Peak area (located near Armidale, NSW).

Sovereign Gold has reached agreement with SUGEC to vend into the joint venture a new tenement (EL 6483) which hosts Martins Shaft where gold mineralisation is significant as the style of mineralisation was predicted from the application of Sovereign Gold's Intrusion-Related Gold System (IRGS) Exploration Model. The SUGEC J/V and MoU consists of 11 tenements (including 3 tenements being acquired from PMR)

The Joint Venture is currently focussing on Martins Shaft and proximate targets where a $2 million exploration budget has been approved, with drilling underway. Planned drilling extends to multiple targets (historic mines, geochemical and geophysical anomalies) within EL 6483,

Sovereign Gold conducted an extensive drilling campaign at the Martins Shaft prospect in the Rocky River-Uralla Goldfields comprising 29 reverse circulation holes drilled for a total of 2,534 metres and 11 diamond holes for a total of 678 meters (ASX, 16 March 2012). Some of the wide and high gold grades drill intersections at Martins Shaft include:

- Diamond Drill Hole SGRDD002: 22 metres @ 3.28 grams/tonne gold from 18-40 metres downhole including 10 metres @ 6.06 grams/tonne gold from 27-37 metres downhole and 2 metres @ 18.85 grams/tonne gold from 35-37m metres downhole.

- Diamond Drill Hole SGRDD004: 18 metres @ 3.51 grams/tonne gold from 52-70 metres downhole, including 7 metres @ 7.47 grams/tonne gold from 57-64 metres downhole and 1 metre @ 19.60 grams/tonne gold from 58-59 metres downhole.

The mineralisation comprises sheeted veins and disseminated gold mineralisation within a felsic dyke, which confirms the potential of a large IRGS hosting several primary hard rock gold deposits.

This IRGS has striking similarities to the multi-million ounce Donlin Creek IRGS deposit, with gold in dykes like Martins Shaft, of the Yukon-Alaska running Tintina Gold Province.

Upon completion of the Sugec spend ($17 million), Sovereign Gold would retain ~55% interest in the Sugec Project Tenements.


Other Assets

Post Restructure, Sovereign Gold will retain ~3.6 million shares in Precious Metal Resources.

To view all diagrams and full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SOC-794453.pdf


About Sovereign Gold Company Limited:

Sovereign Gold Company 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.



Contact:

Sovereign Gold Company Ltd.
T: +61-2-9251-7177
F: +61-2-9251-7500
www.sovereigngold.com.au