Merger talks between LionGold and smaller miner IRL halted
LIMA Oct 9 (Reuters) - Peruvian gold miner IRL said on Wednesday it is no longer in talks with Singapore-listed LionGold over that firm's potential purchase of the small Latin American miner.
"Minera IRL Limited...is announcing that its discussions with LionGold Corp Limited regarding a proposed private placement and a possible offer for Minera IRL have ceased," IRL said in a press release without specifying why.
LionGold was one of three firms listed on the Singapore Exchange Ltd whose shares were suspended on Friday in a rare move by the bourse and market regulator.
IRL had announced that the two firms were in advanced acquisition negotiations on Friday when LionGold's shares were still suspended.
On Monday when trading resumed shares in LionGold tumbled 60 percent.
LionGold, in response to SGX queries about trading in its share price, said on Monday that it was negotiating with IRL on a possible offer, but did not explain how the talks might have caused a drop in its shares.