Stock Name: LionGold
Company Name: LIONGOLD CORP LTD
SIAS Research in a Mar 29 research report says: "Over the last two weeks, LIGO proposed the placement of 12m shares for $12.4 million and the issue of convertible bonds for up to US$30 million. We view the proposed fund raising activities in a positive light.
"Upfront, we are looking at a potential expansion of LIGO’s share capital by up to only 7%. More importantly, LIGO will gain some $50 million of funds to accelerate Signature’s expansion and to bank roll other acquisitions that it is reviewing. As at end December 2011, LIGO had $27.8 million of borrowings.
"As such, the total amount of funds raised will also be sufficient to help refinance LIGO’s debt. Moreover, the increase in LIGO’s stake in Signature to 76.22% at the close of the takeover offer has allowed more value from the Konongo project to accrue to the company. Intrinsic value of $1.215. MAINTAIN INVEST."
Company Name: LIONGOLD CORP LTD
| Research House: SIAS | Price Call: BUY | Target Price: 1.215 |
SIAS Research in a Mar 29 research report says: "Over the last two weeks, LIGO proposed the placement of 12m shares for $12.4 million and the issue of convertible bonds for up to US$30 million. We view the proposed fund raising activities in a positive light.
"Upfront, we are looking at a potential expansion of LIGO’s share capital by up to only 7%. More importantly, LIGO will gain some $50 million of funds to accelerate Signature’s expansion and to bank roll other acquisitions that it is reviewing. As at end December 2011, LIGO had $27.8 million of borrowings.
"As such, the total amount of funds raised will also be sufficient to help refinance LIGO’s debt. Moreover, the increase in LIGO’s stake in Signature to 76.22% at the close of the takeover offer has allowed more value from the Konongo project to accrue to the company. Intrinsic value of $1.215. MAINTAIN INVEST."
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