LION Lionsgold

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

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May 03, 2017 06:53 ET (10:53 GMT)

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