LionGold Corp signs ore processing agreement with Australian firm

LIONGOLD Corp has signed an ore processing agreement with Australia-listed A1 Consolidated Gold that could boost revenues over a three-year period.

Up to 150,000 tonnes per year of ore from the A1 Gold Mine in the Australian state of Victoria will be processed at the nearby Ballarat gold plant, which is wholly-owned by Castlemaine Goldfields, a LionGold subsidiary.

LionGold also announced on Monday that it will buy 34.5 million new A1 shares at 11.6 Australian cents per share, for A$4 million (S$4.7 million).

The purchase will give it a stake of about 19.9 per cent in A1.

A1 will use the money to advance the development of its A1 Gold Mine. The mine is targeted to begin trial processing at Castlemaine's Ballarat Mine within the next six months.