Lion to underwrite part of One Asia rights issue

By Romel S. Gurky

ASX-listed Lion Selection Group said that it would underwrite $1.1 million of the $2.6 million rights issue planned by One Asia Resources to help raise funds for the development of Pani gold mine in Indonesia?s Gorontalo Province.

Lion Selection Group and Asian Lion own a combined 35 percent stake in One Asia, an Australian unlisted public company, which focuses on two mines in Indonesia.

?Lion is underwriting $1.1m of the rights issue, along with support from Macquarie Bank and the introduction of new shareholder Gavin Bradley. In addition, the Lion Board has approved Lion Manager to underwrite $100,000 of the rights issue,? Lion said in a statement Tuesday.

Prior to the rights issue announcement, One Asia said it has signed an MoU with Indonesia?s Provident Capital Partners Pte Ltd to set up a joint venture that would develop the Pani gold project.

Provident would own 66.6 percent stake in the joint venture, while One Asia the remainder. The move is part of efforts by One Asia to resolve dispute over the Pani gold project that started in 2013.

One Asia is fighting with a subsidiary of IDX-listed gold miner PT J Pasifik Resources Tbk over who the rightful partner of local cooperatives KUD Dharma Tani Marisa is in developing the Pani gold project.

Editing by Reiner Simanjuntak