21st Jan 2014 10:54
LONDON (Alliance News) - Sovereign Mines Of Africa PLC Tuesday said it has now increased its equity holding in subsidiary Sovereign Mines of Guinea Ltd to 75%, from 60%.
The gold resource company, focused on Africa, said it has agreed to capitalise GBP2.8 million of the inter-company loan it provided to its subsidiary to fund its exploration activities and running costs.
Following these transactions, the Guinea unit has 320 shares in issue. Of those, 240 shares are now held by Sovereign Mines of Africa while the remaining 80 shares are held by SOGUIPAMI, the Republic of Guinea's state-owned mining firm.
The news comes a week after Sovereign Mines of Africa announced a JORC compliant total inferred resource of 16 million tonnes at a gold grade of 1.2 grams per tonne, representing 610,000 ounces of gold, at its Mandiana Gold Project in Guinea.
Sovereign Mines of Africa shares were down 5.9% to 2.00 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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