PERTH (miningweekly.com) – Singapore-listed LionGold would look to raise up to S$202-million through a share placement and warrant issue to fund its acquisition drive.

“The S$200-million we have proposed raising will provide LionGold with a war chest to take advantage of the immediate, extraordinary opportunities we have identified among global gold miners,” said MD and CEO Nicholas Ng.

“The investments we make today could ultimately position the group as a leader in the industry, once the up-cycle in gold resumes,” he said.

The private placement would consist of three tranches, and would see LionGold issue some 180-million new shares at a price of S$1.10 each. In conjunction with the share placement, up to 135-million detachable warrants could be issued, at a price of 2c each.

The majority of the placement proceeds would be used in LionGold’s acquisition drive, with the balance used to progress existing gold mining projects and for general working capital.

Since March last year, LionGold has acquired an interest in seven gold companies, of which two are in production. The primary concessions include Australia, Ghana and Bolivia.

In July this year, LionGold launched a takeover of TSX-listed Acadian Mining Corporation, which has projects in Nova Scotia. On successful completion of the takeover offer, LionGold’s gold resource would increase to 6.8-million ounces, of which nearly 900 000 oz were in reserve.

The company wholly owns Brimstone, in Western Australia, as well as Castlemaine Goldfields, which is producing from the Ballarat mine in central Victoria. The group also has a 77% shareholding in Signature Metals, which holds the Konongo gold project, in Ghana, and an 18% stake in Citigold.

In May, LionGold became the largest shareholder of Unity Mining, which was producing gold from its Tasmanian operations.