TIDMLION
RNS Number : 9180X
Lionsgold Limited
30 November 2017
Lionsgold Limited
("Lionsgold", "LION" or the "Company")
Financing
Lionsgold (LON: LION), the AIM quoted company focused on the
exploration, production and retail application of physical gold,
including the development of the Goldbloc digital currency, is
pleased to announce details of a placing to provide funding for the
advancement of the Company's operations.
Lionsgold aims to provide shareholders with dual stream
opportunities in both natural resources and the gold-focused
fintech and digital currency market.
The recent appointments of David Price as Chairman and Alan
Davies as Global Strategy Consultant demonstrate the potential of
LION's precious metals exploration and mining interests and provide
the specialist skills needed to maximise our opportunities.
Lionsgold Chief Executive Officer Cameron Parry's experience
creating and leading AIM quoted natural resource investor Metal
Tiger plc (LON:MTR) and NEX Exchange quoted blockchain focused
Coinsilium Group Limited (NEX:COIN) have provided a foundation for
the management of a combined natural resources and fintech
business.
Furthermore, with the appointees above, there is additional
internal resource now available to pursue an acceleration of our
mining and exploration interests. Progress is being made across
these interests and further updates to the market are anticipated
in due course.
Turning to the Company's fintech operations and notably the
recent development of Goldbloc, progress has been good and has
drawn interest from numerous third parties. This stems from the
opportunity of providing Goldbloc within the extremely large
pro-gold Indian market, and also for Goldbloc's potential for
application in the global banking system.
To fund activities going forward, Lionsgold has raised gross
proceeds of GBP550,000 through the placing of 68,750,000 new
ordinary shares of no par value (the "Placing Shares") at no
discount to the prevailing market bid price of 0.8p each ("the
Placing") with a 1 for 1 attaching warrant exercisable up to and
including 31 December 2018 at 1.2p ("Placing Warrants").
Alan Davies, the Company's Global Strategy Consultant, has
subscribed for 6,000,000 Placing Shares and 6,000,000 Placing
Warrants for a total of GBP48,000.
The Company intends to allow its directors and persons
discharging managerial responsibilities ("PDMRs") (currently in a
close period ahead of the publication of its results for the year
ended 30 June 2017) the opportunity to subscribe for Ordinary
Shares and warrants on the same terms to the Placing once the close
period has ended.
Cameron Parry, Chief Executive Officer of Lionsgold, commented:
"Lionsgold's business interests are approaching key moments in
their development over the coming weeks and months. There has been
considerable work undertaken to position LION in this manner and we
are focused on maximising our commercial opportunities.
"We have a highly talented team of natural resource industry
skilled professionals who have the practical experience to drive
our mining related interests forward and I look forward to
announcing news of progress achieved across our natural resource
assets. In addition, within our fintech division, the development
of Goldbloc will see the Company with a digital gold currency that
has the potential for global application. With this fundraising we
can seek to complete the full commercialisation of Goldbloc in the
coming months.
"I would personally like to thank shareholders for their support
as we built Lionsgold's value proposition and continued with our
vision for the Company. We look forward to reporting further in due
course, across each of our business activities."
Placing
The Company is raising gross proceeds of GBP550,000 through the
placing of 68,750,000 Placing Shares at a price of 0.8 pence per
share (the "Placing Price"), being the bid price of the ordinary
shares of the Company ("Ordinary Shares") as at close of trading on
29 November 2017 (the last trading day prior to this announcement),
raising gross proceeds of GBP550,000 from existing shareholders and
high net worth investors known to the Company.
The Placing incorporates the issue of warrants to subscribe for
68,750,000 new Ordinary Shares at an exercise price of 1.2 pence
per warrant (a 50% premium to the Placing Price) on the basis of 1
Placing Warrant per 1 Placing Share, with an exercise period of up
to 31 December 2018. If the Lionsgold share price exceeds a 5 day
volume weighted average price exceeding 3.6p during the warrant
term, the Company has the right to serve notice on warrant holders
to exercise warrants. Should the Company serve notice, any Placing
Warrants unexercised within the 7 day time period allowed would be
cancelled.
The Placing Shares will be issued in two tranches. The first
tranche of 27,500,000 Placing Shares and 27,500,000 Placing
Warrants (40% of the Placing) will be issued under the existing
authorities granted to the directors of the Company and completion
of the first tranche of the Placing is conditional only on
admission of the first tranche of Placing Shares to trading on AIM,
which is expected to take place on or around 13 December 2017.
Completion of the second tranche of the Placing which comprises
41,250,000 Placing Shares and 41,250,000 Placing Warrants is
conditional upon shareholder approval at the Company's AGM to be
held on or around 28 December 2017, and subject to approval being
granted, the second tranche of Placing Shares shall be admitted to
trading on AIM on or around 29 December 2017.
Director and Management Participation
Lionsgold directors and persons discharging managerial
responsibilities ("PDMRs") were unable to participate in the
Placing because the Company is currently in a close period ahead of
the publication of its results for the year ended 30 June 2017. The
Company intends to allow its directors and PDMRs the opportunity to
subscribe for further Ordinary Shares and warrants on the same
terms as the Placing once the close period has ended.
Total Voting Rights
In accordance with the provision of the Disclosure Guidance and
Transparency Rules of the FCA ("DTRs"), the issued ordinary share
capital of Lionsgold following the first tranche of the Placing,
being unconditional, there shall be 286,711,719 Ordinary Shares
with voting rights attached (one vote per share). There are no
shares held in treasury. This total voting rights figure may be
used by shareholders as the denominator for the calculation by
which they will determine whether they are required to notify their
interest in, or a change to their interest in, Lionsgold under the
DTRs.
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Enquiries:
Lionsgold Limited Tel: +44 (0)203778 0578
Cameron Parry (Chief Executive Officer)
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
Edward Lee
About LIONSGOLD Limited (LON: LION)
Lionsgold is a London Stock Exchange AIM market quoted,
gold-focused company involved in the exploration, production and
retail application of physical gold, with gold assets in India and
Finland and a majority owned financial technology company
developing the digital gold currency, Goldbloc.
Lionsgold's three core focuses are:
-- Strategic partnership with leading India gold exploration and
mine development company, Geomysore, in which Lionsgold holds
21.15%;
-- Majority ownership of a financial technology platform
providing online accounts for people to hold and utilise physical
gold (www.goldbloc.com / www.indexgold.com /
www.therealasset.co.uk); and
-- Gold exploration and production in Central Eastern Finland.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 30, 2017 02:01 ET (07:01 GMT)
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