20 Dec 2013 13:30
20 December 2013
Sovereign Mines of Africa Plc
("Sovereign Mines" or "the Company")
Issue of Equity
Sovereign Mines of Africa Plc, the gold mining exploration company with properties in the Republic of Guinea in West Africa, is pleased to announce that it has increased its equity holding in its subsidiary company, Sovereign Mines of Guinea Limited ("SMG"), from 52.5 per cent. to 60 per cent.
The Company has issued 4,000,000 new ordinary shares of 1 pence in the Company ("Ordinary Shares") to John Barry, Exploration Director of the Company, at a price of 2.9 pence per share, in exchange for the 5 shares he holds in SMG, (equivalent to 2.5 per cent. of the issued share capital of SMG). As a result Mr Barry's direct and indirect interest has increased to 8,000,000 Ordinary Shares representing 3.22% of the issued share capital of the Company.
The Company has also issued 8,000,000 new Ordinary Shares to La Solutions Inc. (a company controlled by Sherif Haidara, Vice President of SMG), at a price of 2.9 pence per share, in exchange for the 10 shares La Solutions Inc. holds in SMG, (equivalent to 5 per cent. of the issued share capital of SMG). The 8,000,000 new Ordinary Shares being issued to La Solutions Inc. represent 3.22 per cent of the issued share capital of the Company and will comprise its entire direct and indirect interest in the Company's Ordinary Shares.
David Pearl, Chairman of SMA, said:
"We are delighted to have increased our stake in Sovereign Mines of Guinea, especially at such an exciting time for the Company following the recent announcement of a maiden resource with outstanding grades and deep oxides as well as the subsequent acquisition of the adjoining concession, which further increases the potential of our gold property at Mandiana Magana."
The 12,000,000 new Ordinary Shares being issued to John Barry and La Solutions Inc. will rank pari passu in all respects with the Company's existing ordinary shares and will represent 4.8% of the Company's enlarged issued share capital. Application has been made for the 12,000,000 new Ordinary Shares to be admitted to trading on AIM ("Admission") and Admission is expected to occur, and dealings are expected to commence at 8.00 am on 31 December 2013.
Following Admission, the Company's issued share capital will consist of 248,358,850 Ordinary Shares, with each ordinary share carrying the right to one vote. The Company does not hold any ordinary shares in treasury. This figure of 248,358,850 may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.
ENDS
Enquiries:
Sovereign Mines of Africa PLC:
David Pearl F.C.A. - Chairman +353 696 8961david.pearl@sovmines.comJohn Barry - Exploration Director +353 8 7669 5608Nathan Steinberg - Finance Director +44 20 7269 7680
Shore Capital - Nominated Adviser & BrokerToby Gibbs / Bidhi Bhoma - Corporate FinanceJerry Keen - Corporate Broking +44 20 7408 4090
Square 1 Consulting LimitedDavid Bick / Mark Longson +44 20 7929 5599
Newgate ThreadneedleGraham Herring / Alex White +44 20 7653 9858
About Sovereign Mines:
Sovereign Mines of Africa Plc is a mineral exploration company incorporated in England and Wales and headquartered in London
At the end of 2007, the founders of the Company saw an opportunity to pool their collective expertise and experience in order to form joint ventures for mineral exploration with governments in Africa. The Republic of Guinea in West Africa was identified as the first target and this ultimately gave rise to the establishment of the Company in 2010.
The Company has entered into a cooperative joint-venture with the Government of Guinea (the "Sovereign Partnership Structure"), pursuant to which the Government was granted an equity stake in Sovereign Mines of Guinea, the operating company of the group. The Directors believe that this collaborative approach gives the Company unusual advantages compared with other small exploration companies and as a result it has been able to acquire early stage substantial and highly prospective properties, any of which could, in the Directors' opinion, become a significant gold asset.