Sovereign sells stake in Mount Andrah
PERTH (miningweekly.com) – ASX-listed Sovereign Gold on Monday announced that it had sold a 17.2% shareholding in its Mount Andrah Gold subsidiary to shareholder Hudson Resources.
Hudson acquired some ten-million shares and ten-million options in Mount Andrah from AceA Resources for $2-million. The subsidiary has 58-million shares on issue, giving it a A$11.6-million value, based on the acquisition price of 20 a share.
Hudson, furthermore, holds 40-million shares in Sovereign Gold, representing a 25.5% shareholding.
“We are very encouraged by this display of confidence by Hudson, which have maintained their position in Sovereign Gold since its initial public offering (IPO) back in 2011,” said Sovereign Gold CEO Michael Leu.
Earlier this month, Sovereign Gold canned a planned IPO for Mount Andrah Gold without revealing a reason for its decision.
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