Lions Gate Metals Inc, a junior Vancouver mineral developer, said that it has struck an agreement in principle to acquire AusNiCo Pty Limited, an Australian based nickel explorer.
Under the deal, Lions Gate will pay 10 million of its common shares and 3 million five year warrants. The 10 million shares are worth about CAD 11.6 million at Thursday’s stock price.
AusNiCo Pty Limited has nickel exploration properties in South East Queensland and is 79% owned by D’Aguilar Gold Limited, which is listed on the Australian Securities Exchange.
Lions Gate said that the merger of the two companies will create a listed base metals specialist with nickel, copper and molybdenum assets in British Columbia and Australia.
Mr Arni Johannson a member of Lions Gate’s board said that “Lions Gate’s goal is to execute on its global acquisition strategy targeting large base metals resources. The acquisition of AusNiCo and its exciting nickel projects will complement Lions Gate Metals’ already impressive copper and molybdenum assets.”