Singapore’s LionGold offers S$69.6m to take over West African mining company

LionGold Corp will acquire all outstanding issued shares of Signature Metals Limited at A$0.02 per share.

According to a release, LionGold Corp Ltd has entered into an implementation deed to acquire all outstanding issued shares of Signature Metals Limited at A$0.02 per share, to be satisfied by the issuance of 80,409,330 LionGold Shares at S$0.8657 per share

The proposed takeover offer thus values Signature Metals Limited at approximately S$69.6million.

Under the terms of the Implementation Deed, SML will use its best endeavours to procure the execution by certain SML shareholders of the Pre-Bid Agreements so that, in aggregate, LionGold would receive undertakings from SML shareholders holding approximately up to 19.9% of the Signature Shares.

Signature Metals is an ASX listed gold exploration and mining company which is producing gold at its flagship mine at the Konongo Gold Project on the world class Ashanti Gold Belt in Ghana West Africa.

The Konongo Gold Project currently has JORC compliant resources of 23.4 million tonnes at a grade of 1.95g/t in the Indicated and Inferred categories for a total of 1.47 million ounces of gold. It contains 16 known gold deposits along 12 kilometres of strike of the Ashanti Gold Belt.