Atlantic Gold (ASX:ATV) noted an announcement by Acadian Mining Corporation (TSX:ADA), that it had given an option to Mr Joseph Gutnick to make a private placement of up to 338.1 million ordinary shares to Golden River Resources Corporation (“Golden River”).
Golden River is controlled by Mr Gutnick. According to the Acadian announcement if the transaction is
completed, Mr Gutnick will control more than 68% of Acadian and have 50% of the nominees of the Board of Directors of Acadian.
Atlantic Gold said it looked forward to having Acadian, with Mr Gutnick’s involvement, continuing as an active neighbour exploring and developing gold deposits in Nova Scotia.
MOU with Acadian Mining
On 31 October 2008, Atlantic Gold announced that a Memorandum of Understanding (“MOU”) had been signed with Acadian to consider:
- processing ore from Atlantic Gold’s Touquoy Gold Project through Acadian’s Scotia mill; and
- consolidating the assets of the two companies including their gold interests, the aggregate resource inventory of which amounts to almost 3.0 million ounces gold.
Discussions between Atlantic Gold and Acadian continued until last week, the two companies have not achieved a definitive plan to give effect to the objectives of the MOU. Atlhough Atlantic Gold remains hopeful through the subscription by Golden River to the placement of Acadian shares described above, will create a basis for the MOU between Acadian and Atlantic Gold to be progressed.