Read the Business Times Weekend this morning in Singapore and looks like we have some publicity over this takeover in Singapore.
After reading it, it definitely confirms my opinion that we shouldn't sell to LionGold.
Reasons from the article:
1.) LionGold have only been in gold mining since December. No way they will have the expertise to further develop our mining operations. LionGold have been making office equipment and producing renewable energy which has absolutely nothing to do with digging out gold and processing.
2.) This deal will "adds tremendous value to (LionGold) shareholders", said their CEO, which really means their CEO knows our company is way undervalue. This deal will benefit LionGold shareholders, not SBL shareholders.
3.) They got the Signature Metals code wrong "SML". Yes that bugs me too. :p
Heres the article from page 13 of The Business Times Weekend typed for you guys to read:
LIONGOLD Corp is ramping up its quest to strike gold by acquiring Australian-listed Signature Metals Ltd (SML).
Under a pact signed yesterday between the two companies, LionGold plans to acquire all outstanding issued shares of the Australian gold miner at A$0.02 apiece.
The offer represents a 54 per cent premium to the closing price of SML on Oct 13, and a 46 per cent premium to its one-month volume weighted average price of A$0.0137 on the Australian exchange.
The purchase consideration will be met by the issuance of some 80.4 million LionGold shares to SML's shareholders at S$0.8657 per share, valuing the ASX-listed firm at around S$69.6 million.
According to a LionGold statement, SML is currently producing gold at its flagship mine at the Konongo gold project in Ghana, West Africa.
The Australian Miner has a 70 per cent stake in Konongo, a project which is known to contain 16 gold deposits along 12 kilometres of strike in an area known as the Ashanti Gold Belt.
It also has licences to prospect for iron ore, nickel and copper in Kenya and Uganda.
"The Signature offer is our biggest acquisition to date, and rightly so. This is an ideal acquisition that adds tremendous value to shareholders," said LionGold CEO Nik Ibrahim Kamil.
Formerly known as Think Environmental Co, LionGold unveiled plans to branch out into gold mining last December after taking a stab at other sectors, including making office equipment and producing renewable engery.
Last month, the firm announced the first milestone of its latest business foray with the production of its first bar of gold.
Investors appear to be convinced that the firm as the Midas touch this time around. LionGold's share price has soared nearly 64 per cent since last Dec 1.
It closed 0.6 per cent higher at 86.5 cents yesterday.
SBL Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
