News: Atlantic Gold Corporation to acquire Canadian gold explorer

Atlantic Gold Corporation (ASX:ATV, TSX-V:AGB) has entered into a share purchase agreement with LionGold Mining Canada Inc. and LionGold Corp to acquire Acadian Mining Corporation for 8.9 million AGB shares and $4 million in cash.

AGB currently holds around $20 million in cash and is capitalised at $46 million.

The assets of Acadian consist of the Beaver Dam and Fifteen Mile Stream gold projects, located proximal to AGB's recently acquired Touquoy and Cochrane Hill Projects, and a portfolio of exploration properties in Nova Scotia, Canada.

This transaction will creation a district-scale gold development camp in a mining-friendly jurisdiction and significantly increase AGB's known resource base.

The acquisition includes portfolio of 1% NSR royalties on three past producing gold mines in Nova Scotia.

The Beaver Dam property is located 20 kilometres north-east of Atlantic’s Touquoy property, and boasts mineral resources of 299,000 ounces gold and Inferred resources of 139,000 ounces gold.

The Fifteen Mile Stream Property lies 37 kilometres north-east of Touquoy, with inferred resources of 444,000 ounces of gold.