Lion to support One Asia Rights Issue
Monday, August 19 2013 - 06:11 AM WIB
ASX-listed firm Lion Selection Group Limited has agreed to partly underwrite an upcoming rights issue for its investee One Asia Resources Limited (One Asia) for A$7.5 million.
One Asia is an unlisted exploration company focused on the exploration for gold resources and development of gold mines in Sulawesi, Indonesia. One Asia?s rights issue is seeking to raise approximately $21 million at $0.65/share.
Lion and other underwriters have committed to underwrite $15.5 million of this rights issue.
One Asia was valued at $0.75/share. Lion said in a statement to the Australian Stock Exchange that it believes this valuation continues to be appropriate, reflecting that the rights issue pricing represents a small discount to this valuation as would normally be the case for a listed company, and noting that the rights issue is largely an internal raising from existing shareholders.
In addition, One Asia is having outstanding exploration success at the Pani project also in Sulawesi where an initial JORC Resource of 1.88 Moz was announced on May 22, 2013.
Robin Widdup from the Lion team has agreed to become a non-executive director of One Asia.
Editing by Johannes Simbolon