JOHANNESBURG (miningweekly.com) – Aim-listed gold explorer Lionsgold said on Thursday it had undertaken a share placing to raise £550 000 before expenses, which would be used to advance its projects in India and Finland.
Lionsgold placed 50-million shares at 1.1p a share, with CEO Cameron Parry, through his family owned trust, having subscribed for three-million shares.
The company issued warrants to subscribe for 25-million new shares at an exercise price of 1.5p a warrant on the basis of one warrant for two placing shares.
Parry commented that the attaching warrants, which were being issued at a 36% premium to the placing price with a relatively short term of six months to exercise, reflected the near-term milestones anticipated at the company’s projects.
Near-term commercial objectives include the completion of the feasibility study at Jonnagiri gold project, in India, and the potential for a mine developer/operator contract to be agreed. The Jonnagiri project could start production towards the end of next year.
The company is also undertaking a bulk sampling campaign in Finland to produce gold in the second quarter of this year and is aiming to turn the Finnish gold joint venture into a self-funded business.
At the physical gold ownership online platform, IndexGold, in which Lionsgold owns a significant shareholding, a digital marketing and product development strategy will be implemented.