Lionsgold Limited Fintech Gold Increased Position (0571E)
03 May 2017 - 8:53PM
UK Regulatory
TIDMLION
RNS Number : 0571E
Lionsgold Limited
03 May 2017
3 May 2017
Lionsgold Limited
Fintech Gold Increased Position
Lionsgold Limited ("Lionsgold", "LION" or the "Company"), the
India-focused gold exploration company with additional exploration
assets in Finland and an interest in a physical gold online trading
platform, is pleased to provide an update on its Fintech Gold
division.
As mentioned in the interim results released on 30 March 2017,
during the development of the Company's joint venture gold trading
and storage platform targeting the Indian market (the "JV")
utilising TRAC Technology Limited's ("TRAC") existing technology
platform, the opportunity evolved, and the decision was taken, to
expand the offering of the platform for UK customers. Since that
time and in light of this decision, the Board and TRAC reflected on
the merits of running two platforms offering the same services, and
the opportunity and increased commercial benefit in applying the
branding and platform development investment under the JV into the
IP holding company with the existing TRAC platform
(www.therealasset.co.uk).
To that end, in the coming weeks, it is proposed that the
developments made under the JV be applied to TRAC's existing
platform and the site be rebranded under the new brand created.
This new direction will benefit from all the existing services
provided by TRAC whilst expanding the offering to include the gold
and silver trading offering for the Indian market. Phase 1 of the
product development under the new brand shall be released soon,
following which therealasset.co.uk will transition across to the
new domain as the address for retail users to buy and store their
physical gold and silver.
In light of the above, the Company has agreed to capitalise its
investment made to date in the JV into shares in TRAC based on
approximately the same valuation that Lionsgold acquired its 27.3%
interest in TRAC (the "Capitalised Shares"). Of the original
GBP50,000 budgeted for Lionsgold's contribution to the JV not so
far invested, the remainder will be used to subscribe for further
shares in TRAC (the "Subscription Shares"). Following the issue of
the Capitalised Shares and the Subscription Shares Lionsgold's
interest in TRAC will increase to 37.7%.
Cameron Parry, CEO of Lionsgold, commented: "We are very pleased
with the outcome of our work and negotiations, resulting in a more
focused and increased interest in TRAC and providing a wider global
market opportunity for existing and future services. LION now
stands to benefit from all of TRAC's existing customers and
established services whilst expanding and refreshing its offering
under the newly developed brand created by the LION-TRAC
collaboration.
"Lionsgold has materially broadened the upside potential through
its interest in TRAC by including the potential of the JV and we
have done so without proportionately diluting our equity interest
by increasing our stake in TRAC to circa 38%. In doing so,
Lionsgold is to have a much more hands-on role in driving the
Fintech gold application forward and introducing several new
initiatives over the coming months which should see the platform
develop in a much more fundamental way than contemplated under the
previous JV.
"I look forward to making further announcements on these and
other initiatives shortly."
For further information, please contact:
Lionsgold Limited Tel: +44 (0) 20 7397 2880
Cameron Parry (Chief Executive Officer)
Luke Cairns (Executive Director)
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
Gavin Burnell
Tavistock (Financial PR) Tel: +44 (0) 20 7920 3150
Emily Fenton
Edward Lee
About LIONSGOLD
Lionsgold is a London Stock Exchange AIM market quoted,
India-focused gold exploration company, with complementary gold
assets in Finland and an interest in a physical gold online trading
platform.
Lionsgold's three core focuses are:
-- Strategic partnership with leading India gold exploration and
mine development company, Geomysore, in which Lionsgold owns
20.5%;
-- Physical gold holding and trading fintech platform for the
UK, India and other jurisdictions; and
-- Gold exploration and production in Finland.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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