Citigold Offers to Acquire All Shares of Gateway Mining

Citigold Corp., an Australian gold miner, offered to acquire all shares of Gateway Mining Ltd. to create a combined entity with $159 million in market capitalization.

Citigold will offer two of its shares for every five of Gateway Mining shares, according to a statement posted on Nasdaq Dubai Web site. The offer opens on Sept. 1 and closes on Oct. 2. “Citigold has embarked upon this course to create a strategic mid-cap mining company that it believes will accelerate growth of value for shareholders of both companies,” according to the statement. Citigold currently owns 14 percent of Gateway Mining.