LionGold partners new PE fund

LionGold Corp, together with a subsidiary of associated firm ISR Capital and Chinese firm Suzhou Power, is partnering a new private equity (PE) fund that invests in natural resources.

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Guanyu said…
LionGold partners new PE fund

Andrea Soh
03 December 2013

LionGold Corp, together with a subsidiary of associated firm ISR Capital and Chinese firm Suzhou Power, is partnering a new private equity (PE) fund that invests in natural resources.

The fund, IPR LP, is structured as a second part of an existing fund, Infiniti Premium Resources, under Infiniti Asset Management. The fund hopes to achieve medium to long-term capital appreciation through direct investments in mining projects, together with related energy and power investments.

As the manager of the fund, Infiniti will have overall responsibility, subject to the supervision of the general partner, IPR Fund Ltd.

Infiniti is wholly owned by investment firm ISR Capital Limited, previously known as Asiasons WFG.

ISR and LionGold share common shareholders in Asiasons Capital.

The other partner, Suzhou Power, is itself a partnership between private investment management firm Shanghai Power Capital Investment Management and state-owned enterprise Jiangsu Eastern China Non-ferrous Metals Investment Holding, which specialises in geological prospecting, mining industry development, exploration and drilling.

Shanghai Power is managed by capital management agency Power Capital, which has more than one billion yuan (S$206 million) in direct investments and 6 billion yuan in assets under management.

Each of the co-partners will provide advisory services to the fund for its investment activities, for which they will receive fees in the form of carried interest, or a share of the profits of the fund.

Said LionGold’s CEO, Nicholas Ng: “Our co-partnership in the fund will serve as a platform for the group to develop its acquisitive strategy, giving LionGold access to a wider deal flow while strengthening our network of financing and equity partners to implement the acquisitive portion of our growth strategy.”

LionGold and Asiasons Capital are part of the trio of penny stocks that collapsed in October. The three, including Blumont Group, have since been dropped from the MSCI Global Small Cap Index, an international stock index widely tracked by fund managers.

Yesterday, LionGold closed 0.5 cent, or 2.8 per cent, lower at 17.6 cents, down almost 90 per cent from its peak of $1.725 on Aug 29.

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