Gold Fields has offered to buy out the shares of junior exploration company Glencar. Glencar’s principal asset, and only defined resource, is its Komana project in southern Mali. Komana has an indicated and inferred mineral resource of 1.25 million ounces of gold, within 150 metres of surface.
Gold Fields CEO Nick Holland says, “The proposed acquisition of Glencar is consistent with Gold Fields’ regionalisation strategy, which includes growing its production in each of the West Africa, South America and Australasia regions to a million ounces per region within five years. We like Mali and this acquisition forms part of our strategy to grow our presence and footprint in the West African region.”
The consideration payable will be financed out of Gold Fields’ existing resources and is expected to close in late September 2009.