By The Canadian Press
HALIFAX - Acadian Mining Corp. (
TSX: V.ADA) says LionGold Corp. Ltd. is offering to buy out the remaining shareholders of the Halifax-based company, which has several gold projects in Atlantic Canada.
Singapore-based LionGold, which has holdings in several countries, is offering 12 cents cash for each share of Acadian that it doesn't already own — about $7 million total.
Acadian shares closed Friday at 11 cents per share but the company says LionGold's offer is 21 per cent higher than the 20-day weighted average price for the publicly traded stock.
LionGold has the right to match any rival offer that Acadian's board has deemed to be superior, with each side subject to $300,000 break fees under certain circumstances if the transaction isn't completed.
The friendly agreement between LionGold and Acadian's board requires approval from two-thirds of votes cast by other Acadian shareholders at a meeting, expected to be held in October.