Arctic Gold was established in 1999 under the name Alcaston Diamond Exploration, which was a wholly owned subsidiary of the Australian company Alcaston Mining NL. Alcaston's business was initially focused on exploration for diamonds in Sweden. At the start of the 2000s, the company was granted several exploration permits for diamond in Norrbotten, northern Sweden and extensive exploration were undertaken for several years.

After a number of years, Alcaston Mining NL was no longer able to finance continued diamond operations and the company sold off large parts of its ownership of the Swedish subsidiary to some Swedish investors.

Since March 31, 2006, the business has been conducted as an independent Swedish company, later under the name Alcaston Exploration AB (name changed in 2009), focusing on exploration for gold and base metals. Operations were mainly focused on the company's exploration permits in Västerbotten, northern Sweden. Activities have included both geophysical ground surveys, drilling for samples of bottom till and bedrock chips, as well as drill cores from greater depths. Positive results have been achieved within several of the Company's exploration areas.

On 8 April, 2010, Alcaston Exploration acquired Arctic Gold AB via an issue in kind of shares in Alcaston Exploration AB to Arctic Gold's owners. Arctic Gold's main asset was the gold and copper project at Bidjovagge in northern Norway. The acquisition of Arctic Gold involves a strategic shift for the Company, with the focus moving from the exploration of several interesting targets, to the development of a mine project. The Company has changed its name to Arctic Gold AB (publ) as part of the new strategy.