LionGold Corp, Singapore’s first Main Board-listed gold company, has proposed boosting its cash holding with a private placement of shares and warrants. Assuming full take-up of placement shares and warrants, gross proceeds would total Sin$202 million. Three investors, Platinum Partner’s PPLO fund, Carnegie Hall Group and Spring Road Advisors, will equally take up the placement. The subscribers were introduced by New York-based investment bank, Jett Capital Advisors.
The majority of the proceeds have been earmarked for acquisitions, with the balance used to progress existing gold mining projects and for general working capital.
LionGold’s chief executive officer and managing director Nicholas Ng says, “The Sin$200 million we have proposed raising will provide LionGold with a war chest to take advantage of the immediate, extraordinary opportunities we have identified amongst gold global miners. The investments we make today could ultimately position the Group as a leader in the industry, once the up-cycle in gold resumes.”
LionGold has acquired interests in seven gold companies since March 2012, two of which are in production. Primary concessions are in Australia, Ghana and Bolivia. In July 2013, the group proposed the takeover of Canadian-listed Acadian Mining Corporation, which has gold projects in Nova Scotia, having taken a 9% stake by taking up a private placement of new Acadian Mining shares in February 2013. On successful completion of a takeover of Acadian Mining, the group’s gold resources would increase to 6.8 million ounces, of which nearly 900,000 ounces are reserves.
Of the group’s gold holdings, Minera Nueva Vista in Bolivia, Brimstone in Western Australia and Castlemaine Goldfields, which is producing gold from its Ballarat mine in Central Victoria, are wholly-owned. LionGold also has a 77% stake in Australian-listed Signature Metals, which holds the Konongo Gold Project in Ghana, and an 18% stake in Australian-listed Citigold, with 11 million ounces of gold resources, including 620,000 ounces of gold reserves, at the Charters Towers tenements in Queensland. In May 2013, the Group became the largest single shareholder of Australian-listed Unity Mining, which is producing gold in Tasmania, purchasing a 13% stake in the company.