Singapore-based company LionGold has bought a 13% share in Unity Mining with almost 93 million shares purchased for a total of Aus$6.67 million.

Unity Mining is an Australian gold explorer, developer and producer which owns and operates the Henty Gold Mine on the West Coast of Tasmania and is developing the Dargues Gold Mine in southern New South Wales.

The company is also involved in gold exploration in West Africa through its investment in GoldStone Resources and holds tenure over the Bendigo Goldfield in Victoria where it is engaged in realizing the value of its Kangaroo Flat gold plant and Bendigo exploration tenements.

Its Henty Gold Mine has produced about 1.3 million ounces of gold over a 16 year period. Unity acquired Henty in July 2009 and recent exploration success has significantly extended the mine life. Continued exploration on the significant near mine tenement package remains a key focus.

The Dargues Gold Mine is 60km southeast of Canberra at Majors Creek near Braidwood, which was a large historic goldfield in New South Wales, producing more than 1.25 million ounces.

LionGold says its investment in Unity is part of the company’s strategy to increase its gold production profile. LionGold acquired a controlling stake in five gold companies in 2012, collectively holding 5.5 million ounces of gold resources, with almost 900,000 ounces of those in reserves.

Wholly-owned Castlemaine Goldfields is producing gold from its Ballarat Mine in Victoria, Australia, at an annual rate of 50,000 ounces. LionGold also has an 18% stake in Australian-listed Citigold, with 11 million ounces of gold resources, including 620,000 ounces of reserves in Queensland, and a 9.35% stake in Canadian-listed Acadian Mining Corporation, with 1.38 million ounces of gold resources in Nova Scotia.

LionGold intends to continue with the rapid expansion of its gold business through organic growth and acquisitions. “The recent volatility in gold prices has led to an even greater fall in value of many junior miners globally, increasing prospects for purchasing producing gold mining companies at discounted prices,” says LionGold’s chief operating officer Matthew Gill.

LionGold’s primary gold interests are in Australia, Ghana and Bolivia. “For acquisitions, prospects will have scalable resources with scope for rapid enhancement. The intention behind this selective approach is to unlock asset value while building out the gold business. Legacy investments in non-core segments such as renewable energy and office equipment manufacture will continue to be divested,” says Matthew Gill.

Don’t miss the special feature on LionGold/Castlemaine Goldfields’ Ballarat mine in the current edition of The ASIA Miner (see www.asiaminer.com and click on the link to the May/June edition)

www.liongoldcorp.com

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