Liongold

Liongold: THE gold hunt continues for LionGold Corp. In yet another strategic move, Co. said it has entered into two agreements with Australian base and precious metal producer Bass Metals on Thur. The first is to buy a full subsidiary of BSM, Hellyer Mill Operations (HMO), for A$13.5m in cash ($17.5m) The second is to subscribe for 58m new BSM shares representing 16.5% of BSM's enlarged share capital at a price of A$0.01/share. This costs A$580,000 and represents a 50% discount to the VWAP of BSM shares before their trading halt. Grp note that acquisition would provide significant headroom for growing LionGold's overall gold output in the medium to long term. Hellyer Mill owns the Hellyer tailings dam which has measured, indicated and inferred resources of 796,000 ounces of gold, and 31.859m ounces of silver. BSM owns the Mt Charter Retention License which has indicated and inferred resources of 239,000 ounces of gold, and 6.971m ounces of silver. Recall that in June, LionGold said it was acquiring an 11.2% stake in Citigold Corporation for A$10m, making LionGold the single-largest shareholder. Earlier in June, it said it will pay about US$7m for a project in Bolivia. LionGold said it bought shares in BSM to provide additional working capital to BSM so it can continue its exploration programme for base metals on the Mt Charter, Hellyer and other mining leases, among other things. BSM and HMO plan to negotiate to collaborate on exploiting new deposits discovered in Tasmania, with Bass focused on base metals and LionGold focused on gold.