LionGold to buy Canadian gold company for up to $9.1 million

LionGold Corp has agreed to acquire Acadian Mining Corp, a Canadian gold company, for up to $9.1 million in an all-cash transaction.

The offer is to buy all the outstanding shares of Acadian - which is listed on the TSX Venture Exchange - for 12 Canadian cents each.

If there is full acceptance from outstanding shareholders and the conversion of outstanding convertible notes, the deal will be worth 7.4 million Canadian dollars, or S$9.1 million.

Acadian's two main projects hold a combined gold resource of 1.333 million ounces, with open pit development potential. LionGold had initially bought 9 per cent of Acadian through in March.

Separately, LionGold said that its Ballarat mine in Australia produced 9,431 ounces of gold from April to June, at a production cost of A$1,210 - or US$1,113 - per ounce.