Merger of AusNiCo
Limited with Liongate Metals Inc
The Directors of D'Aguilar
Gold and its 79% subsidiary AusNiCo have
reached agreement to merge AusNiCo with the TSX
listed tier 1 Canadian company, Lionsgate
Metals Corporation Inc. (TSX-V: LGM). The merger of the two companies
will create a listed base metals specialist with nickel, copper and
molybdenum assets in British Columbia, Western Canada and south east
Queensland, Australia.
The Proposed Merger Terms
Lionsgate will purchase all of the 90.16 million shares and 22 million
options in AusNiCo for the issue of 10 million
common shares and 3 million five (5) year warrants exercisable at
CDN$1.10 per share. The acquisition is subject to the completion of satisfactory
reciprocal due diligence and applicable shareholder and regulatory
approvals.
D'Aguilar will appoint three Directors to form a new Lionsgate
Board of six. AusNiCo management and Directors
Messrs Ian Levy, Brian Moller and D'Aguilar CEO Nick Mather are expected to contribute
strongly to the growth and direction of Lionsgate.
Messrs Mather and Moller�s experience in the
foundation and rapid emergence of Waratah Coal
Inc as the TSX-V listed proprietor of one of the western world�s largest
undeveloped coal resources before its $130m takeover in December 2008, is expected to be a strong factor in the growth
of Lionsgate.
During his time at the previously ASX-listed
Allegiance Mining, Ian Levy was in charge of the development of the Avebury nickel mine in Tasmania, with contained
nickel of 172,000 tonnes (refer footnote). Strong geological similarities
evident between the AusNiCo projects and Avebury are expected to develop into an exploration
strategy with wide ranging global implications in previously untested nickeliferous terranes. Mr
Levy said that he "expected that the experience would lead to the
discovery of some new and very significant nickel camps for Lionsgate."
Commenting on the propose merger, Mr Mather said
that "D'Aguilar's strategy of successfully
bedding down its main resource exploration programs in independently
listed financed and managed corporations with rapid growth strategies and
undervalued assets was gathering momentum and that the proposed Ausnico-Lionsgate marriage presented D'Aguilar with an exciting opportunity to see its
nickel exploration models financed and managed, in a company with
complimentary marketing and financing skills."
Lionsgate Chairman, Mr Arni Johannson
said "Lionsgate�s goal is to execute on
its global acquisition strategy targeting large base metals resources. The
acquisition of AusNiCo and its exciting nickel
base will complement Lionsgate�s already
impressive copper and molybdenum assets". The Board of Lionsgate also boasts Mr Damien Reynolds and Mr Mark
Hewett from Canaccord, one of North
America's largest broking houses with extensive experience
in all levels of mining and exploration financing. The combined team will
be dedicated to the continued growth and development of Lionsgate�s asset portfolio.
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