The board of directors (the 'Board' or the 'Directors') of
INFORMATION ON MMPL
MMPL will have a registered share capital of AUD10,000 comprising 10,000 shares. CGT and Yaoo Investments have agreed to contribute in the following proportions to MMPL: (a) CGT will subscribe for 85.1% of the equity interest in MMPL, comprising 8,510 ordinary shares, for a cash consideration of AUD8,510 ('Consideration') and (b) Yaoo Investments will subscribe for 14.9% of the equity interest in MMPL, comprising 1,490 ordinary shares, for a cash consideration of AUD1,490.
MMPL is incorporated for the purpose of investments and/or activities relating to the exploration or mining of molybdenum within the tenements owned by the Company located in
INFORMATION RELATING TO YAOO INVESTMENTS
Yaoo Investments is a company incorporated in
Mr
Mr
RATIONALE FOR ENTERING INTO A JOINT VENTURE WITH YAOO INVESTMENTS
If and when the Company commences exploration for molybdenum, it will have to commit a significant amount of financial resources and assemble a team of experienced and competent professionals and employees so as to increase the odds of making a commercially viable discovery.
Having a joint venture partner will allow the Group to share the risks and bear the costs that would otherwise have to be borne solely by the Company. In addition, where necessary, Mr
THE INCORPORATION OF MMPL AS AN INTERESTED PERSON TRANSACTION
Pursuant to Chapter 9 of the Listing Manual Section B: Rules of Catalist ('Catalist Rules') of the
Under Rule 916(2) of the Catalist Rules, approval of shareholders of the Company is not required for an investment in a joint venture with an interested person if: (a) the risks and rewards are in proportion to the equity of each joint venture partner; (b) the issuer confirms by an announcement that its audit committee is of the view that the risks and rewards of the joint venture are in proportion to the equity of each joint venture partner and the terms of the joint venture are not prejudicial to the interests of the issuer and its minority shareholders and the interested person does not have an existing equity interest in the joint venture prior to the participation of the entity at risk in the joint venture.
As set out in paragraph 2 of this announcement, the capital contribution from the Company and Yaoo Investments are in proportion to the equity of each joint venture partner. Further, Yaoo Investments does not have an existing equity interest in MMPL prior to the participation of the Company in the joint venture.
Contact:
Tel: +65 6690 6860
Fax: +65 6690 6844
Email: info@liongoldcorp.com
Web: www.liongoldcorp.com
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