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LionGold dismisses rumours of probe by CAD

Neither the company nor any of its officers were told of an investigation, says gold miner


GOLD miner LionGold Corp has responded to a Business Times query about rumours that the company was under investigation by Singapore's white-collar crime investigator, the Commercial Affairs Department (CAD).

Executive director Raymond Tan Soo Khoon said in a filing to the Singapore Exchange (SGX) yesterday that neither the company nor any of its officers were told that they were under CAD investigation.

"In addition, neither the company nor any of its officers has been contacted by the Commercial Affairs Department that the company or any of its officers is under any investigation," he said.

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LionGold was part of a stock collapse a week ago that included Asiasons Capital and Blumont Group. The counter had hit a historical high of $1.725 on Aug 29. It lost more than a billion dollars in market value since, notably on Oct 4 and Oct 7 when the counter plummeted from $1.51 to 25 cents. SGX had declared the three stocks designated securities, prohibiting investors from short-selling the stocks and requiring them to make cash payments upfront for transactions.

On Oct 4, Asiasons similarly denied market rumours that it was being investigated by the Monetary Authority of Singapore.

The sharp price fall forced LionGold to terminate two deals: a potential offer for Latin American precious metals mining company Minera IRL, and a proposed placement of 180 million new shares at $1.11 each and up to 135 million new warrants at two cents each to placement subscribers.

LionGold hit a four-and-a-half year low of 15.4 cents last Friday. Yesterday, it rose 0.7 cent, or 4.5 per cent, to 16.1 cents.