Lionsgold wants 100% of bullion firm

By Staff reporter / April 13, 2018 / www.mining-journal.com / Article Link

The AIM-listed explorer, which also has a 30% stake in a Finnish gold project in the bulk sampling stage, said it had taken on the rest of TRAC to better its return once its Goldbloc technology is launched.

Lionsgold said TRAC had a net asset value as of June 30 of just over £8,000 and brought in a before-tax profit of £3,600 12 months up to that date.

The explorer's share price jumped 20% on early trading after the news to £0.028 per share, although is still way down the year's high of £0.045/share in January.

The previous high came following its 12.5% investment in Goldbloc partner Railsgate. 

Goldbloc is a digital token backed by actual gold reserves (each token worth 1 gram), although currently can't be traded outside TRAC's own system, making it little different to buying actual bullion.

Lionsgold CEO Cameron Parry said when Goldbloc was properly finished as a system it would allow people to use gold holdings like a normal bank account through another technology which TRAC holds the rights to.

"The Goldbloc mobile phone banking application is on schedule for release in the UK this quarter," Parry said.

"The board considers the full buy-out of TRAC to be strategically and operationally important and we believe the timing of this corporate transaction at the current valuation to be opportune as we expect the understanding, acceptance and value of Goldbloc to increase with product rollout."

Parry, one of only three directors, owns 5% of TRAC personally so will earn a greater stake in Lionsgold when the transaction is done; there are still another 15% worth of TRAC shares to be courted for the full takeover.

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