Sovereign Gold Co Ltd AU$1 Million of SPP Underwritten by Hudson Investment Group

Sydney, Australia (ABN Newswire) - Sovereign Gold Co Ltd (Sovereign Gold) (ASX:SOC) is pleased to announce that, following discussions with Hudson Investment Group Limited (ASX:HGL) (Hudson), Hudson have agreed to underwrite the first $1 million of the recently announced Share Purchase Plan (refer ASX release dated 17th June, 2014).

Any shortfall from the first $1 million of the SPP Offer will be issued to the Underwriter or sub- underwriters nominated by the Underwriter from Sovereign Gold's 15% placement capacity under ASX Listing Rule 7.1, or as otherwise approved by the Sovereign Gold's shareholders.

Full details of the SPP, including the underwriting terms and conditions will be included in the SPP offer documents to be sent to eligible shareholders on 23 June 2014.


SPP Summary

The Offer price will be the lower of 4 cents or a 10% discount to the volume-weighted average price of SOC shares traded on the Australian Securities Exchange (ASX) over the 5 trading days up to and including the day on which the Offer is scheduled to close (23 July 2014), rounded down to the nearest one tenth of one cent.

The maximum price that eligible shareholders will pay is 4 cents per New Share.

Shareholders can purchase shares totalling up to $15,000.

Shares issued under the SPP will rank equally with existing shares.

------------------------------------------------
Record Date                         16 June 2014
Announcement of the Share Purchase
Plan                                17 June 2014
Documents mailed to Eligible
Shareholders                        23 June 2014
Opening date for acceptances        23 June 2014
Closing date for acceptances        23 July 2014
Allotment and issue of New Shares   30 July 2014
Quotation of New Shares on ASX      30 July 2014
Despatch of shareholder statements  30 July 2014
------------------------------------------------

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.



Contact:

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