Acadian Mining Corp. (
TSX: V.ADA,
Stock Forum) and LionGold Corp. Ltd., Singapore's first Main Board listed gold company, announced that they have entered into a definitive agreement pursuant to which LionGold has agreed to acquire all of the issued and outstanding common shares of Acadian by way of a statutory plan of arrangement under the Canada Business Corporations Act.
According to the
Acadian Mining press release, under the arrangement, shareholders of Acadian will receive $0.12 in cash for each common share of Acadian, representing a premium of approximately 21% to the 20-day volume weighted average price of the Acadian Shares on the TSX Venture Exchange as of July 26, 2013.
The total consideration payable to Acadian shareholders is approximately $6.98 million.
The arrangement will be subject, among other things, to the approval of at least 66 2/3% of the votes cast by Acadian shareholders on the basis of one vote per Acadian Share. The transaction is expected to close by mid-October 2013.
Acadian is a Halifax, Nova Scotia, based company with several gold projects located in Atlantic Canada.
On Monday morning, Acadian rose 4.6% and was trading at $0.115 a share. The company had a market cap of $7.4 million, based on 64.2 million shares outstanding.