Reuters: Regulatory News: UPDATE 1-Blumont soars after naming new chairman, LionGold, Asiasons rebound

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UPDATE 1-Blumont soars after naming new chairman, LionGold, Asiasons rebound Oct 8th 2013, 03:35 Share this Email Print Reprints Mon Oct 7, 2013 11:35pm EDT By Rujun Shen SINGAPORE Oct 8 (Reuters) - Shares in Singapore's Blumont Group Ltd more than doubled in early trade on Tuesday after the company appointed a new chairman, while Asiasons Capital Ltd and LionGold Corp Ltd rebounded from steep drops in the previous session. In a rare move, the Singapore Exchange last Friday suspended trade in the shares of Blumont, Asiasons and LionGold, warning the market may not be fully informed of the companies' affairs after share prices tumbled. The exchange on Sunday lifted the trading halts, but declared the stocks "designated securities," meaning investors cannot short-sell them and purchases must be paid for upfront with cash. Asiasons was LionGold's biggest shareholder with an 8.7 percent stake as of Aug. 30, while Blumont and LionGold have a non-executive independent director in common. Blumont shares rose 131 percent to hit an intra-day high of S$0.30 on Tuesday, and were last traded at S$0.225. The company has lost nearly S$6 billion ($4.81 billion) in market capitalisation since its shares hit a record high of S$2.54 last week. Alexander Molyneux, chairman of two companies in which Blumont has invested - uranium firm Azarga Resources Ltd and Celsius Coal Ltd, a coking coal development company with assets in the Kyrgyz Republic - has agreed to acquire a 7.8 percent stake in Blumont and become its chairman. Molyneux, a former investment banker, had led SouthGobi Resources Ltd, a Mongolia-based coal miner, to list on both the Toronto Exchange and Hong Kong Exchange before leaving the company last year. He also sits on the board of Ivanhoe Energy Inc, led by billionaire miner Robert Friedland. Blumont, which previously was involved in the packaging, property and investment sectors, started investing last year in a number of companies in such sectors as iron ore, coal, gold, uranium and copper. Discovery Metals Ltd, an Australian copper miner and one of Blumont's recent investment targets, became a victim of the recent turmoil in Blumont's shares and saw its shares sink 18 percent to an all-time low of A$0.054. Last month, Blumont agreed to subscribe to $100 million in convertible bonds and A$8.75 million ($8.25 million) in a share placement in Discovery Metals. The bonds have yet to be issued. Shares of Asiasons rose as high as 57 percent to S$0.235 on Tuesday and LionGold Corp Ltd climbed as much as 44 percent to S$0.36. Link this Share this Digg this Email Reprints

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