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CTO 1.8¢

lion gold

  1. Anyone reading the news on LionGold?????http://www.smh.com.au/business/liongold-slump-hits-local-investors-20131006-2v295.html

  2. Rather outdated and not much info.

    The Liongold bubble has burst. Look at the closing prices for Liongold:
    Thursday, October 3rd $ 1,51
    Friday, October 4th: $ 0,88
    Monday, October 7th $ 0,25
    Today, October 8th $ 0.19

    Also read Kip Keen on Liongolds failed financing:
    "To fund acquisitions, LionGold planned back in mid August to raise S$202 million at S$1.11 a share with three firms, Platinum Partner, Carnegie Hall Group and Spring Road Adivsors.
    Of course, now trading for less than a quarter that price, it becomes improbable firms would take up LionGold shares at S$1.11 – if they already haven't – which in turn would limit LionGold's access to fresh cash to spend on new and ongoing acquisitions."

    If I were Citigold, I wouldn't try to hold my breath waiting for Liongold money.

  3. gmt

    5,375 posts.

    Tweetie, CTO already have received Lion Gold money, LG have about an 18% holding in CTO. I would guess that LG are probably wanting to sell that holding at some stage given their apparent financial problems.

    DYOR My thoughts only

  4. gmt

    5,375 posts.

    and this from Bloomberg


  5. blueboy99

    163 posts.

    Our great directors (NOT!) keep finding them!

  6. gmt

    5,375 posts.

    They certainly do Blueboy, looks like the punters are not happy SP down to support level 4.5c if it goes through that on volume who knows where it will stop, though it did hit 4.2 a while back. it seems the PROSPECT of the $100mill being paid means nothing to the punters.

    DYOR my thoughts and ramblings only

  7. SurfsUpDoods

    2,289 posts.

    gmt..."it seems the PROSPECT of the $100mill being paid means nothing to the punters."

    Does the market actually know how the money received is going to be used?

    2 tranches already received, but what was it used for?
    Coffee, Tim Tams and new suits for the directors?

    What will the next tranches be used for?

    The standard line, "The Company will use the net proceeds from the issue of the Bonds for working capital purposes and development of the Charters Towers gold project" does not hold for me. Need explicit details of the money is allocated for. Its called accountability.

    5mil here and there and the 100M will soon dry up with nothing to show for it and CTO development will have progress no further.

  8. Does anyone know if the $200,000,000 was done? Priced @ $1,10 and now trades below 20c. Can they invest right now in this project when have 100% holdings in other projects?

    in other question. Is Lion gold worth tradig if they have got money in? trading at about cash then?? can SP turn around and make profit from here?

  9. SurfsUpDoods

    2,289 posts.

    Using the annoucement dates as the key dates.

    First Tranche: $3M Payable 5 days after signing.
    Signing 8th April (announcement day) or thereabouts.

    Paid 16th April, 2013 (a few days late)

    Second Tranche: $7M payable 5 days after FIRB and shareholder approval

    FIRB was 17th May, 2013
    Shareholders approval: 8th July, 2013

    Paid 10 September (2 months late)

    "In respect of the first Subsequent Tranche, the date which is 6 months from the date of the Agreement;"

    3rd Tranche payable about now.
    With each subsequent tranche is payable every 3 months.

    10% ($10M) paid to date.

    What has been the progress made to achieving the end goal of 300,000 oz pa. output, or 50,000 oz pa for that matter.

    Any gold being produced or are they still developing to get to the ore body - as this cost won't be included in the production costs?

  10. So if funds were not used for production and rather exploration and flash suits. This is misapporpration of funds and lion gold can withdraw?/// CIti can be halted then too if insolvent?????????????? This all seems bad and funds dont seem to be bankable .

  11. gmt

    5,375 posts.

    Cat, the only way Lion Gold can withdraw is sell their shares but imposiible for them to do that on market as there is little buying depth.It was stated that the early use of funds would be used for development and little or no production, however it is my view that production should have been paramount!! They seem to have added extra layers of management and no doubt salaries would have increased in addition there will be probably payments to management for being successful in getting the funding deal together. The way I read the deal Express Link have plenty of ways to exit the deal whenever they wish IMHO.

    Read "BSA Uncertainty" Page 38 Notice of EGM 4/06/13

    DYOR My thoughts and ramblings only

  12. So you expect the remaining allocated funds to Citi to hit the accounts on schedule or the slightly late?/?? Ultimately will see full funding? I dont think lion gold will continue investing any more money in this. Too many others that they are better to focus on to regain SP higher
    No one has answered questions on if lion gold is worth the trade or if the money $200,000,000 is now in lion gold accounts. if so it is traded below cash below 20c.

  13. gmt

    5,375 posts.

    Cat, perhaps you have to re-read what I wrote. It is anybodies guess if Express Link will follow through with payments, they appear to have numerous ways out of the deal IMHO. As for LG no I wouldn't be investing in it, who knows what Lion Gold will do with its share holding in CTO.

    DYOr My thoughts and ramblings only

  14. http://liongoldcorp.listedcompany.com/newsroom/20131011_193747_A78_C35A0BEDDDEA336948257C01003A67FB.1.pdf

  15. gmt

    5,375 posts.

    Cats thanks, I expected that would happen hence it could be a possibility that LG will want to sell something to raise cash.

  16. Vince12

    38 posts.

    Not often I agree but I am not expecting them to cause deliberate damage to CTO and themselves by dumping on the market. Since ELM have not converted notes at 7cents they may find it more profitable to purchase between market price and 7 from LG which would also have the advantage of avoiding further dilution.

  17. gmt

    5,375 posts.

    Vince exactly what I was eluding to, in addition if LG were to sell to ELM it takes out the possibility of a blocking share in the event of acquisition.

    DYOR My thoughts and ramblings only

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