Came across this. It does somewhat raises more question than answers GFA moving out, yet they continue to invest elsewhere??? Lots of questions.
Glencar soars on Gold Fields' offer (Fri, 24 Jul) GOLD FIELDS is making a £28m cash offer for the whole of AIM-traded Glencar Mining, which has 1.25 million ounces of gold resources in Mali. Glencar's shares nearly doubled on the news. Gold Fields is offering nine pence in cash for each share, subject to acceptance by shareholders representing 80% of Glencar's equity, but this may be reduced to at least at Gold Fields's discretion. Glencar's shares shot up 91% to eight pence. The Glencar board has recommended the offer to its shareholders, said Hugh McCullough, MD of the Dublin-based group. "We have worked on our assets for some time now. We believe we have a very good asset here, but obviously one has to plan for how best to see the asset advanced and progressed," McCullough told Miningmx. "We knew there would be a lot of money to be raised if we were to go it alone and would lead to substantial dilution of the company's share price so we felt looking at this it was the best and most attractive offer for the Glencar shareholders," he said. Glencar has the Komana project in south Mali, which has 1.25 million ounces of inferred and indicated resources up to 150 metres below surface. "A good bit of drilling and definition is still required and it is some way short of a feasibility study," McCullough said. Not only is there the Komana project, but the Sankarani property is next door and is 51% owned by Gold Fields and 49% by Glencar. If this transaction goes through, Gold Fields would take full ownership of the property where there is advanced drilling but no declared resource yet. "We like Mali and this acquisition forms part of our strategy to grow our presence and footprint in the West African region," said Nick Holland, Gold Fields' CEO. "The offer fairly values Glencar’s existing resource base and exploration upside and we are excited about its future inclusion in the Gold Fields group.” In its third quarter results to end-March 2009, Gold Fields said it had signed a letter of intent with Glencar in March this year for the South African gold group to earn up to 65% of the Komana project. Gold Fields said it would make an equity investment in Glencar, giving it 15% ownership of the listed entity. Glencar told its shareholders on 7 July that talks with Gold Fields about a joint venture on Komana had been terminated without agreement, saying it could not agree terms it could recommend to its investors. At Sankarani, Gold Fields said in that report, it was defining and drilling high priority targets at the Finguana, Sanioumale, Bada, and Fie River tenement blocks. At Bada, bed rock sampling delineated a three kilometre long gold in soil anomaly that is ready for initial drilling, it said. In the region is AngloGold Ashanti's Sadiola mine, its Morila joint venture with Randgold Resources, which has the Loulo project there too. Resolute has the Syama mine in the greenstone belt. (miningmx.com)
CQT Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
