LionGold

LionGold: To acquire unlisted public co Brimstone Resources for A$3.8m (approx $4.7m). This will be done by issuing new shares in LionGold at A$1.0039 each, approx 0.64% of co’s shares in issue. Brimstone is an Australian co involved in gold exploration and mining with reported resources of approx 52.3k ounces of gold. It had terminated its IPO due in May 2011 priced at A$0.20 due to poor mkt conditions then. Brimstone also ha ownership of Penny Lake and Stawell East exploration licenses which co’s geologists view as highly attractive. Co trades at 14.2x P/B, and CNMC approx 12.4x P/B although both currently are loss making.