Merger talks between LionGold and smaller miner IRL halted

Reuters

LIMA, Oct 9 (Reuters) - Peruvian gold miner IRL said on Wednesday it is no longer in talkswith Singapore-listed LionGold over that firm'spotential purchase of the small Latin American miner.

"Minera IRL Limited...is announcing that its discussionswith LionGold Corp Limited regarding a proposed privateplacement and a possible offer for Minera IRL have ceased," IRLsaid in a press release without specifying why.

LionGold was one of three firms listed on the SingaporeExchange Ltd whose shares were suspended on Friday ina rare move by the bourse and market regulator.

IRL had announced that the two firms were in advancedacquisition negotiations on Friday when LionGold's shares werestill suspended.

On Monday when trading resumed shares in LionGold tumbled 60percent.

LionGold, in response to SGX queries about trading in itsshare price, said on Monday that it was negotiating with IRL ona possible offer, but did not explain how the talks might havecaused a drop in its shares.

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