Lionsgold To Fully Proceed With GBP1.3 Million Railsbank Investment

LONDON (Alliance News) - Gold producer Lionsgold Ltd said on Tuesday it will proceed with its ...

Alliance News 20 February, 2018 | 12:48PM
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LONDON (Alliance News) - Gold producer Lionsgold Ltd said on Tuesday it will proceed with its investment into banking and compliance platform provider Railsbank Technology Ltd, following the completion of due diligence.

Following the agreement between the two companies in January, Lionsgold will invest GBP1.3 million to acquire 130,800 shares, or a 13% stake in Railsbank, gaining exclusive access to Railsbank's banking platform related to deposits, currencies, tokens and other products connected with physical gold for a period of three years.

For the year to the end of March, Railsbank reported a pretax loss of GBP440,454.

"Lionsgold is delighted to confirm that the company has completed its due diligence process and is proceeding with its investment, funded from existing cash resources, to acquire 12.5% of Railsbank and secure the exclusive use of their banking and compliance platform for physical gold and gold derivatives to be held within bank accounts," said Chief Executive Officer Cameron Parry.

"This transaction is fundamentally important for Lionsgold and was a key strategy and priority to complete in the lead up to the release of its digital gold currency Goldbloc; scheduled for launch during next quarter with a mobile phone banking app and attaching Mastercard debit card," Parry added.

Shares in Lionsgold were down 4.1% at 3.88 pence on Tuesday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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