LionGold scraps S$202m fund-raising plan
SINGAPORE: Singapore’s LionGold Corp Ltd, whose shares have been put under trading curbs, said it had called off a proposed fund-raising exercise of up to S$202 million (US$162 million) after the recent volatility in its shares.
"The termination of the agreement was mutually agreed upon by LionGold and the subscribers of the placement, which include Platinum Partners PPLO fund, Carnegie Hall Group, and Spring Road Advisors," LionGold told the Singapore exchange in a filing late on Friday.
In August, the gold miner had proposed a three-tranche private placement of up to 180 million new shares at S$1.10907 each. It had also planned to place 135 million new warrants at S$0.02.
On October 4, the Singapore exchange suspended trading in Blumont Group Ltd, Asiasons Capital Ltd and LionGold - three inter-linked companies - after sharp falls in their share prices, and then imposed trading curbs on Sunday.
In a statement on its business performance, LionGold said the exchange’s trading curbs had put further pressure on its shares, which have crashed by 90 per cent since October 3.
"This has resulted in a significant disadvantage relative to other resource and mining companies, given the abundance of opportunities to acquire undervalued producing gold mining assets which are complementary to our existing operations," Group chief executive Nicholas Ng said.-- Reuters