Singapore’s only main board-listed gold company, LionGold Corporation, will subscribe for up to 6 million new shares in Canadian company Acadian Mining, in a bid to gain an inexpensive foothold in North America. The purchase will see LionGold’s stake increase to 9.35% for Can$540,000.
Acadian holds total assets of 1.26 million ounces of gold at its flagship projects, Beaver Dam and Fifteen Mile Stream, in Nova Scotia. Both have potential for open pit development, as do other Acadian-owned tenements in the area.
“LionGold is of the view that the proposed investment provides an initial inexpensive foothold in an underexplored gold-bearing region that is consistent with a longer term plan to create a North American Hub of gold mining operations,” says the company’s chief operating officer Matthew Gill.
Acadian has a suite of Scotia Goldfields projects and is focused on developing Beaver Dam and Fifteen Mile Stream which are in central Nova Scotia, less than 20km apart. They are also both less than 150km by highway from provincial capital Halifax.
LionGold has rapidly established itself in the gold mining industry, acquiring controlling stakes in five gold exploration and mining companies since March 2012. Its primary concessions are in Australia, Ghana and Bolivia and collectively hold more than 5 million ounces of gold resources, of which, nearly 900,000 ounces are classified as reserves. The company says its future expansion will be achieved through further acquisitions and organic growth.