Castlemaine Goldfields Ltd

Castlemaine announced a recommended all-scrip offer from and equity placement to Liongold Corporation Limited on 16 April 2012.

The takeover offer of 2 LionGold shares for every 9 Castlemaine shares values Castlemaine at 18.4 cents per share, a 62% premium to the VWAP on 13 April 2012, the last trading day before the announcement of the offer, based on LionGold’s VWAP for the same day.

Castlemaine is a gold explorer and producer with land holdings which provide it with access to two of the three largest historical gold producing areas in Victoria. Castlemaine has 100% of the Ballarat, Castlemaine, Tarnagulla, Berringa and Sebastian goldfields with approved mining and exploration licenses over the key areas.

LionGold is a Singapore listed company with a market capitalisation of approximately A$600 million which is aiming to become the Singapore market’s first mid-tier gold mining development and production company. LionGold recently completed the scrip takeover of another ASX-listed gold company, Signature Metals, which holds a 70% interest in the Konongo Gold Project in Ghana.

RFC is advising Castlemaine on the offer from LionGold, with the Target’s Statement and Bidder’s Statement due to be sent to shareholders during May 2012.