LionGold Corp Ltd (Catalist:A78) announced that it has entered into subscription agreement for a private placement of 2.5% unsecured redeemable convertible bonds due 2018 for gross proceeds of SGD 100,000,000 with new investor, Premier Equity Fund sub fund E, a fund managed by Value Capital Asset Management Private Ltd on June 19, 2015. The transaction will take place in three tranches comprising of SGD 50,000,000, SGD 25,000,000, and SGD 25,000,000 each. The tranches will be further issued in sub-tranches of SGD1,000,000 each. The bonds will mature in three years after the closing date for the first sub tranche of the tranche 1 or such further period as notified by the investor to the company upon the occurrence of an extension event. The notes will bear fixed interest rate of 2.5% per annum. Interest is payable 12 months from each closing date. The bonds constitute direct, unconditional, unsubordinated and unsecured obligations of the company. The bonds are redeemable at 100% of their principal amount on its maturity date. The bonds are convertible into shares shall be 85% of the average of the traded volume weighted average price per share for any three consecutive market days on which Shares were traded determined at the sole and absolute discretion of the bondholder, on which trades are done during the 30 trading days immediately preceding the relevant 5 conversion date of the bonds. The conversion Price shall not be lower than SGD 0.003. The company shall issue the tranche 1 in the following manner, in respect of the first sub-tranche of tranche 1, on the date falling within five business days immediately after the last of the conditions precedent set out in the subscription agreement are fulfilled or such other date as the company and in respect of each of the subsequent sub-tranches of tranche 1 on such date which may include the closing date for the first sub-tranche of tranche 1 as the investor shall determine in its sole and absolute discretion and shall communicate such issue to the company. The investor has granted to the company an option to require the investor to subscribe for tranche 2 at the during the period commencing from and including the date when the last of the tranche 1 are converted into conversion shares to and including the fifth business day thereafter. The investor can subscribe for tranche 3 during the period commencing from and including the date when the last of the tranche 2 are converted into conversion shares to and including the fifth business day thereafter. The transaction is subject to various approvals including approval-in-principle by the SGX-ST being obtained for the listing and quotation of the conversion shares and consideration shares and shareholders&rsquo approval to be obtained in special general meeting. The net proceeds of the transaction will be approximately SGD 94,350,000. The company will pay SGD 500,000 and such sum shall be satisfied by the issue of the new Shares to the investor at a price equal to the volume weighted average price per share for the trading day immediately prior to the date of the passing of the relevant shareholders&rsquo resolution at a special general meeting of the company.