UPDATE: Gold Fields Offers GBP28 Million For Glencar Mining
24 Juillet 2009 - 5:50PM
Dow Jones News
Gold Fields Ltd. (GFI), Africa's second-largest producer of the
precious metal, has agreed to purchase a smaller mining company for
about GBP28 million to give it access to a project in Mali with a
resource of 1.25 million troy ounces.
The deal is part of an ongoing trend of consolidation in
Africa's still fragmented mining industry as companies look to
bolster reserves or turn to a partner to help fund the development
of assets.
The Johannesburg-based company said it has made a recommended
offer of 9 pence a share for Glencar Mining PLC (GN2.DB), whose
principal asset is the Komana project in southern Mali.
The offer is subject to the acceptance of shareholders
representing 80% of Glencar's issued shares, although Gold Fields
said it may reduce that to as low as 50%. The purchase would be
paid out of existing resources and is expected to close in late
September, the company said.
"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, chief executive of the South African mining firm.
"The offer fairly values Glencar's existing resource base and
exploration upside," he said.
Dublin-headquartered Glencar, which is focused on exploration
and gold deposits in west Africa, on July 7 said it had broken off
talks with Gold Fields that had been aimed at creating a joint
venture on the Komana project.
While large-scale consolidation such as Xstrata PLC's (XTA.LN)
rejected nil-premium proposal to combine with rival Anglo American
PLC (AAUK) tends to grab headlines, a number of smaller deals are
in the works. Randgold Resources Ltd. (GOLD), with the support of
AngloGold Ashanti Ltd. (AU), last week made a rival offer for Moto
Goldmines Ltd. (MGL.T) in a deal that values the gold exploration
firm at about $488 million, more than an earlier agreed bid from
Red Back Mining Inc. (RBI.T). At stake is access to one of Africa's
largest undeveloped mineral resources, the Moto gold project in the
Democratic Republic of Congo.
AngloGold is Africa's largest gold producer.
Elsewhere, Central African Mining & Exploration Co. (CFM.LN)
earlier this month said it had received preliminary takeover
approaches from unnamed suitors. Aquarius Platinum Ltd. (AQP.AU) is
close to finalizing its GBP96 million takeover of smaller Ridge
Mining PLC (RDG.LN).
Company Web site: www.goldfields.co.za
www.glencarmining.ie
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com