Chrysalis joins the tech trend

Neale Fong is chairman of Chrysalis Resources. Picture: Matt Jelonek/The West Australian.

Chrysalis Resources has become the latest down-on-its-luck explorer to quit the resources sector for the more glamorous world of technology.

Shares in the Neale Fong-chaired company surged this morning after it emerged from a trading halt to announce plans to backdoor list a mobile banking, payments and remittance platform based in the Philippines. Dr Fong is a former boss of the WA Department of Health.

Chrysalis said Peppermint Innovation operated an established platform and developed new and innovative mobile phone applications aimed at improving business efficiency and deriving revenue for commercial clients and agent networks.

The company is looking to expand from its Philippines base throughout Asia, Australia, the Middle East, Europe and Tunisia.

Chrysalis said the mobile banking, payments and remittance market was a rapidly expanding industry with significant market potential as the prevalence and reliance on mobile telecommunication continued to increase.

“A key aspect of the platform is to provide a mechanism, via a mobile phone, to the global unbanked population to bridge the financial inclusion gap,” the company said in a statement.

“It is estimated that 2.5 billion working age adults, over half the world’s adult population, do not have an account at a formal financial institution.”

Chrysalis said it had entered into a binding term sheet agreement to acquire Peppermint Innovation via a scrip consolidation and subsequent issue of new shares. The agreement was subject to due diligence, shareholders agreement and the acceptance of a definitive agreement.

Chrysalis will seek to raise $3.5 million as part of the agreement.

Like similar agreement, performance shares would be issued to the vendors of Peppermint subject to revenue and share price milestones being achieved.

Chrysalis said it would continue to monitor its exploration assets in Zambia. The company also has in place a $300,000 purchase option agreement with Fortescue Metals Group over its West Angeles iron ore project in the Pilbara.

Chrysalis isn’t the first Perth company to move into the global remittance market with Zhenya Tsvetnenko’s Digital CC today announcing it had raised $3.5 million in a placement to fund an accelerated rollout of its new AirPocket product.

The company announced earlier this month it would move away from its previous activities as a Bitcoin miner after the value of the digital currency plummeted.

Chrysalis shares closed up 100 per cent at 3.4 cents shortly before the close while Digital CC shares were off 2.5 cents, or 8.77 per cent, to 26 cents.