By John Phillips
Sovereign Gold (ASX: SOC) has recently moved to a complete acquisition of Gossan Hill Gold Limited, which is an unlisted exploration company with numerous gold prospects in New South Wales.
Sovereign Gold has reached 91% in acceptances.
The offer is subject to a number of conditions, including; at least 80% of Gossan shareholders accepting the identical terms of this agreement; and the due diligence of Gossan being undertaken by Sovereign Gold is determined by Sovereign to be satisfactory.
The due diligence process is already well advanced. Consideration for the acquisition to total up to $700,000. This comprises $200,000 in cash and the issue of 2 million ordinary shares in Sovereign Gold at $0.25 cents per share.
Sovereign Gold is focused on exploring for gold and base metals in northern New South Wales, and has a strategic joint venture partner in Jiangsu Geology and Engineering (Jiangsu) providing significant funding ($11 million) to fasttrack exploration programs.
The company also has a very experienced board, which includes John Dawkins AO, chairman, who is the Former Federal Government Minister for Trade and Treasurer of Australia. Adviser to World Bank and OECD.
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