SINGAPORE Oct 18 Singapore-listed Blumont Group
Ltd, which has lost more than $5 billion in market
value this month, said it has secured $200 million in new
funding from New York-based investment firm Platinum Partners.
Blumont, one of three Singapore-listed stocks subject to
trading restrictions after a sudden plunge in their share prices
recently, said late on Thursday that Platinum will subscribe to
convertible bonds issued by the group.
Blumont will in turn use part of the proceeds to buy $100
million of convertible bonds in Australian copper miner
Discovery Metals Ltd. The rest of the funds will be
used to finance future investments in the mineral and energy
resources sector and for working capital, the Singapore-listed
The funding from Platinum will ease concerns about Blumont's
planned commitment in the Brisbane-based copper miner. Shares in
Discovery Metals rose 13.3 percent to A$0.085 in Sydney trading
Blumont, LionGold Corp and Asiasons Capital Ltd
saw their shares plummet in early morning trade on
Oct. 4 before trading in the stocks was suspended by the
Singapore Exchange Ltd (SGX).
The SGX has since declared all three stocks "designated
securities," meaning people cannot short-sell their shares and
must pay for any purchases with cash up front.
Platinum Partners' PPLO fund had been due to subscribe to
part of a S$202 million share placement in LionGold, but that
deal was called off late last week.
Platinum Partners' Value Arbitrage fund was also due to
receive stock in Asiasons as part of a share placement used to
fund Asiason's purchase of a stake in oil explorer Black Elk
Energy Offshore Operations LLC. That deal is currently in limbo
after SGX queried whether Asiasons had a strong enough mandate
to make that share issue.
Blumont has lost around S$6.26 billion ($5.05 billion) in
market value since Oct. 1. Its shares are currently trading at
S$0.114, down from a high of S$2.54 at the start of this month.