Lionsgold Ltd Strategic Placing to advance India and Fintech

Lionsgold Ltd

Lionsgold Ltd (LON:LION), the gold-focused exploration company with assets in India and Finland and a significant shareholder of a physical gold holding and trading exchange, has today announced the Company has raised £550,000 (before expenses) through the placing of 50,000,000 new ordinary shares of no par value (“Ordinary Shares”) (the “Placing Shares”) at a price of 1.1 pence per share (the “Placing”).

Highlights:

· Placing of 50,000,000 Placing Shares at a price of 1.1 pence per share (the “Placing Price”) (equal to the mid-market price of the Ordinary Shares as at close of trading on 7 June 2017, the last trading day prior to this announcement) raising gross proceeds of £550,000;

· Issue of warrants to subscribe for 25,000,000 new Ordinary Shares at an exercise price of 1.5 pence per warrant (a 36 per cent. premium to the Placing Price) on the basis of 1 warrant per 2 Placing Shares, with an exercise period of approximately 6 months ending 15 December 2017 (the “Warrants”);

· Lionsgold CEO subscribing for 3,000,000 Placing Shares (representing 6 per cent. of the Placing) through Yarramen Corp Ltd which is owned by his family trust;

· The Placing Shares will be issued under the existing authorities granted to the directors of the Company and completion of the Placing is conditional only on admission of the Placing Shares to trading on AIM, which is expected to take place on or around 22 June 2017; and

· Placing proceeds to be utilised to advance Lionsgold’s strategic plans in relation to two core areas of focus – India and Fintech (financial technology).

Cameron Parry, Chief Executive Officer of Lionsgold Ltd, commented: “We are delighted to report that Lionsgold has secured this strategic financing at no discount to the prevailing mid-market share price, to fund and progress identified objectives as part of LION’s corporate strategy. We are grateful to both of our corporate brokers for their support of Lionsgold, currently a micro-cap AIM-quoted company, raising equity funds at no discount to the market price.

“The 1 for 2 attaching warrants are being issued at a 36 per cent. premium to the Placing Price, with a relatively short term of approximately six months in which to exercise, reflecting the near-term milestones anticipated.

“Near-term commercial objectives include: the completion of the feasibility study at Jonnagiri and potential for a Mine Developer/Operator contract to be agreed; undertaking a bulk sampling campaign in Finland to produce gold in H2 this year and see our Finnish JV self-funded; and implementation of the digital marketing and product development strategy of IndexGold.”

Placing Summary

Lionsgold has undertaken the Placing to raise £550,000 (before expenses) through the issue of 50,000,000 Placing Shares at a price of 1.1 pence per share.

Each placee will receive one Warrant for every two Placing Shares, to subscribe for one additional new Ordinary Share at a price of 1.5 pence each, exercisable at any time prior up to and including 15 December 2017 (a total of 25,000,000 Warrants).

Cameron Parry, Chief Executive Officer, has, through Yarramen Corp Ltd (“Yarramen”), a company owned by his family trust, subscribed for 3,000,000 Placing Shares at the Placing Price. The information set out at the end of this announcement in accordance with the requirements of the EU Market Abuse Regulation, provides further detail. Following the Placing, Mr. Parry will be interested in aggregate in 10,000,000 Ordinary Shares, representing 3.9 per cent. of the enlarged issued share capital. Through his participation in the Placing, Mr. Parry, through Yarramen, will also receive 1,500,000 million Warrants.

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM and trading is expected to commence at 8.00 a.m. on or around 22 June 2017.

In accordance with the provision of the Disclosure Guidance and Transparency Rules of the FCA (“DTRs”), the issued ordinary share capital of Lionsgold following the Fundraising shall be 254,211,719 Ordinary Shares with voting rights attached (one vote per share). There are no shares held in treasury. This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Lionsgold under the DTRs.

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