Sovereign Gold Company Ltd eyes an international lithium acquisition

Friday, May 13, 2016 by Proactive Investors

Sovereign Gold Company Ltd (ASX:SOC) is raising $1.2 million through a rights issue and could be on the cusp of acquiring an overseas lithium project to add to its existing resources portfolio.

The company had announced a $1.2 million non-renounceable rights issue in April, which is expected to be completed by the end of this month.

Sovereign Gold has been assessing domestic and international lithium and gold opportunities, with a focus on acquiring projects near known, well documented lithium discoveries and production areas.

The company is currently in discussion regarding a lithium opportunity which satisfies its investment criteria, and will advise the market if the discussion becomes exclusive.

Meanwhile, the Mt Adrah Gold Project in New South Wales is still understandably a focus given the strength of the AUD gold price. The project has a mineral resource estimate of 770,000 ounces of gold within a total mineral resource estimate of 20.5 million tonnes grading 1.1 g/t gold.

Sovereign Gold will explore the prospectivity, scrutinise the potential for mining operations, and review drill hole data at Mt Adrah.

With a cash position of $1.93 million as on 31 March 2016 and new capital coming in, the company is well positioned to look for additional lithium and gold acquisitions to strengthen its resources portfolio.

Are we expecting good news next month as earlier?