LionGold buys Vista Gold for S$9m

US$2m will be set off.

According to a release, LionGold Corp Ltd announced the completion of the acquisition of 100% of Vista Gold (Antigua) Corp, following the agreement of amended terms with the seller, Australian-listed Republic Gold Ltd.

The total consideration to be paid by LionGold will be US$7 million (approximately S$9 million). About US$2 million of this amount will set off under an amended Loan Agreement, with the balance satisfied by the issue of 6.48 million new LionGold shares to Republic Gold.

Vista Gold, through its wholly-owned subsidiaries, is the beneficial owner of the 38 overlapping mining concessions making up the Amayapampa Gold Project. The concessions are located about 380 kilometers southeast of Bolivia’s capital, La Paz, in an established mining area.

The Project’s 1.28 million ounces of gold resource include 787,300 gold reserves based on the NI 43-101 mineral classification standard recognised in Canada, similar to the JORC Code used in Australia.

On completion of the transaction, LionGold’s resources will increase from 2.28 million ounces to 3.56 million ounces, and 787,000 ounces of reserves will be added to its gold portfolio. The US$7 million consideration corresponds with a low upfront investment cost of about US$5.50 per gold resource ounce and provides LionGold with an important foothold in South America’s gold mining industry.