Lions Gate Metals Reaches Agreement to Acquire Australian Nickel Producer

Vancouver-based Lions Gate Metals Inc. (LGM) has reached an agreement in principle with AusNiCo Pty. Ltd. of Australia to merge the companies under LGM. AusNiCo, which is 79% owned by D’Aguilar Gold Ltd. of Australia, has nickel exploration tenements in Southeast Queensland. LGM will acquire all of the issued securities of AusNiCo in exchange for the issue of 10 million common shares and three million five-year warrants exercisable at C$1.10 per share. Each company will appoint three directors to a new LGM Board of six directors. The merger of the two companies will create a listed base metals specialist with nickel, copper and molybdenum assets in BC and Queensland.