Lionsgold Ltd (LON:LION) shares advanced more than 30% on Wednesday as the company updated on its digital currency business, which will now be able to issue own-branded Mastercard debit cards.
Earlier this month the AIM-quoted company agreed to invest £1.2mln into Railsbank Technology, giving it a 12.5% stake, with the arrangement tied to the development of the ‘Goldbloc’ digital currency.
Now, the latest arrangements see Railsbank becoming a debit card programme manager through an agreement with Cornercard UK, a business to business card issuer.
It means that Railsbank customers, including Goldbloc, will be able to have their own branded Mastercard debit cards that work with Railsbank bank accounts and International Bank Account Numbers (IBANs).
"This is excellent news for Railsbank and for Goldbloc,” said Cameron Parry, Lionsgold chief executive.
“With Railsbank entering into an agreement with Cornercard UK and confirming the use of Mastercard with their debit cards, this locks in another exciting aspect of the Goldbloc offering, due for release in Q2 this year.”
Parry added: “"Further, Lionsgold is midway through its due diligence in relation to its proposed investment to acquire an 12.5% equity stake in Railsbank and secure an exclusive three-year period for Lionsgold to utilise Railsbank's banking and compliance platform for physical gold related products, such as the digital gold currency, Goldbloc.
"We look forward to updating shareholders in relation to Lionsgold's proposed investment in Railsbank once due diligence is complete."
Lionsgold shares were up 0.97p or 30.88% changing hands at 4.09p each.