Lionsgold Ltd (LON:LION), the gold-focused exploration company with assets in India and Finland, and a fintech subsidiary that provides physical gold online accounts (www.indexgold.com), has today announced that it has increased its shareholding percentage in Geomysore Services India Pvt Ltd (“Geomysore”).
· 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 £163,500 based on £1: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.