Asia-Pacific Strategic Investments buys into LionGold's former asset (Amended)

ASIA-PACIFIC Strategic Investments has picked up a stake in LionGold's former Amayapampa Gold Project in Bolivia.

The firm, which is currently in the midst of a reverse takeover deal involving miner Coeur Gold Armenia, bought a 22.3 per cent stake in special purpose vehicle Silvermane Investments for S$6 million. The firm has paid S$2 million in cash, and will pay the balance through promissory notes when the mine starts production.

These will not bear interest and will mature within two years of being issued.

Silvermane currently holds a majority stake in LionGold South America, Vistra Gold Antigua and LionGold Bolivia, which together own Minera Nueva Vistra. The Amayapampa Gold Project belongs to Minera Nueva Vistra.

LionGold has agreed to sell its remaining stake in the three firms to Silvermane for S$3.5 million.

The acquisition by Asia-Pacific Strategic Investments, completed on Tuesday, will enable the firm to invest in the "highly prospective" mineral mining business and own assets worth US$42 million to US$77 million, the firm said.

It is also anticipating good cashflow from this business, enhancing shareholders' value.

The counter closed at 5.5 Singapore cents on Tuesday.

Amendment: An earlier version of this article stated that the acquisition will enable Asia-Pacific Strategic Investments to own assets worth US$42 million to US$88 million. This has been amended to reflect the correct value of US$42 million to US$77 million.