LionGold allays concerns over funding issues flagged by auditor

Singapore

LIONGOLD Corp, which has failed to get a clean bill of health from auditor PwC for its latest full-year financial results, has sought to assure shareholders that it is able to obtain sufficient funding for its operations.

In a clarification note released on Thursday, LionGold said that its directors and audit committee have reviewed its fund-raising initiatives and noted that while uncertainties exist, "there are reasonable grounds to believe that the company will be able to raise sufficient funds to enable the group to fund its operations in the next 12 months". Its fund-raising plans include a proposed rights-cum-warrants issue announced on June 30 to raise some S$18.5 million. LionGold said that, given the recent fall in its share price, it intends to revise the issue price to make the issue sufficiently attractive.