TIDMLION

RNS Number : 2806M

Lionsgold Limited

27 July 2017

27 July 2017

Lionsgold Limited

Increase in Indian Gold Company Shareholding

Lionsgold Limited ("Lionsgold", "LION" or the "Company"), the gold-focused exploration company with assets in India and Finland, and a fintech subsidiary that provides physical gold online accounts (www.indexgold.com), is pleased to announce that it has increased its shareholding percentage in Geomysore Services India Pvt Ltd ("Geomysore").

Highlights

-- Geomysore has raised funds by the issue of 17,508 new ordinary shares at 1,300 Rupees ("Rs") per share.

-- Two of the four largest shareholders, Lionsgold and Thriveni Earth Movers Pvt Ltd, took up 100% of the offering, marginally increasing their ownership percentages to 21.15% and 36.91% respectively.

-- Lionsgold has agreed to invest Rs13,737,100 (approximately GBP163,500 based on GBP1:Rs84 exchange rate).

-- Geomysore in conjunction with their specialist consultants are in the final stages of completing an Economic Feasiblity Study ("EFS") on their Jonnagiri gold project in South India, where there is a 361,000 ounces JORC compliant resource (indicated and inferred) and for which Geomysore has been granted a 30-year mining lease.

-- The funds raised by Geomysore will be used for general working capital, funding operations whilst the EFS is completed and a Mine Developer and Operator contract is negotiated.

Cameron Parry, Chief Executive Officer of Lionsgold, commented: "We are pleased to report Lionsgold has been able to marginally increase its shareholding in Geomysore at this pivotal time, on the eve of the EFS completion. Lionsgold is continuing exploratory discussions with Geomysore and its Shareholders regarding ways LION could potentially further increase its exposure to Geomysore's large Indian gold resources portfolio.

"This additional investment in Geomysore and the investment recently announced making Lionsgold the majority shareholder in our Fintech Gold company, sees LION fulfil the purpose of its recent strategic placing.

"Lionsgold continues to progress plans for its India Gold, Finland Gold and Fintech Gold divisions and we look forward to releasing further news on each over the coming weeks."

Details of the Transaction

As per the Company's recent placing as announced on 8 June 2017, Lionsgold has applied proceeds to advance its plans in relation to its India Gold and Fintech Gold divisions. On 12 July 2017 LION announced its agreement to increase to a majority stake in its Fintech Gold subsidiary. Lionsgold has now agreed a transaction to increase its India Gold interests through subscribing for additional shares in Geomysore.

Lionsgold has subscribed for 10,567 new ordinary shares in Geomysore at a cost of RS1,300 per share. On a fully diluted basis Lionsgold shall then hold 237,426 of the total 1,122,563 Geomysore shares on a fully diluted basis.

For further information, please contact:

 
Lionsgold Limited                               Tel: +44 (0) 20 7397 2880 
 Cameron Parry (Chief Executive Officer) 
 Luke Cairns (Executive Director) 
WH Ireland Limited (Nominated Adviser)          Tel: +44 (0) 113 394 6600 
 Tim Feather 
 Ed Allsopp 
Smaller Company Capital Limited (Joint Broker)  Tel: +44 (0) 20 3651 2911 
 Rupert Williams 
 Jeremy Woodgate 
 
 Beaufort Securities Limited (Joint Broker)      Tel: +44 (0) 20 7382 8300 
 Elliot Hance 
Tavistock (Financial PR)                        Tel: +44 (0) 20 7920 3150 
Emily Fenton 
Edward Lee

About LIONSGOLD

Lionsgold is a London Stock Exchange AIM market quoted company with a 'mine to market' strategy focused on the exploration, production and application of physical gold, with gold assets in India and Finland and a majority shareholding in a physical gold online account provider.

Lionsgold's three core focuses are:

-- Strategic partnership with leading India gold exploration and mine development company, Geomysore, in which Lionsgold owns approximately 21%;

-- Majority owned gold-focused financial technology company enabling people to hold and utilise physical gold through online accounts (www.indexgold.com); and

   --      Gold exploration and production in Finland.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCUBRKRBVABURR

(END) Dow Jones Newswires

July 27, 2017 05:06 ET (09:06 GMT)

Lionsgold (LSE:LION)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Lionsgold Charts.
Lionsgold (LSE:LION)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Lionsgold Charts.