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Thursday, 25th June 2009 (755 views)

Australian gold miner Catalpa has signed a merger agreement with Lion Selection's gold assets.

The newly combined company will have an output of around 130,000 ounces a year and the move marks a growing trend for the gold industry's junior players to join together, Reuters reports.

Catalpa managing director Bruce McFadzean said: "We think Australia needs new mid-tier producers and that's always been our goal."

As part of the merger, Lion's non-gold assets will be distributed to shareholders as separate stock.

Shareholders would then receive one Catalpa share for each original Lion share.

Mr McFadzean said the deal between the two companies would fill the gap for investment in mid-cap gold producers.

In related news, it was revealed this week that Canadian company Wesdome Gold Mines is to begin drilling again at Dubuisson, Quebec.

Wesdome is aiming to complete 25,000 metres of exploration between June and November this year.

 

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