Gold Fields and GlencarIt would seem that Gold Fields bought Glencar for their mine in Mali ... and because Grey Crown and Glencar already had an agreement in place for the two properties in Uganda - when Gold Fields took over Glencar, they were obligated to sign off on the Uganda deal. I wouldn't read too much into Grey Crown's relationship with Gold Fields other than it makes a great way to "drop names" and my guess is that $800,000 in-form figure was negotiated to help the PP.
Gold Fields expands gold exploration programme with offer for Glencar
But is not looking for any M&A heroics
Author: Geoff Candy
Posted: Friday , 24 Jul 2009
JOHANNESBURG -
Tier one gold miner, Gold Fields announced Friday that it has made an offer for the entire share capital of junior explorer Glencar.
The deal, which is fully supported by the Dublin listed explorer's board, values the company at £28 million and would see Glencar shareholders receive £0.09 per share - twice the price the shares closed at on Thursday.
According to a statement released by Gold Fields, "The offer is subject to the acceptance by shareholders representing 80% of Glencar's issued share capital. However, Gold Fields may reduce this acceptance threshold, at its discretion, but to no lower than a percentage which is more than 50%.
Gold Fields Spokesman, Julian Gwillim, told Mineweb, the terms of the deal have been agreed by both parties but, there is still a formal process that has to be followed.
If the deal goes ahead it would see Gold Fields taking ownership of Glencar's only defined resource, the Komana project in Southern Mali which has according to a statement by Gold Fields, "an indicated and inferred mineral resource of 1,250,0001 ounces of gold, within 150 metres of surface."
According to Gwillim the two companies already have a joint venture agreement on the property alongside Komana, called Sankarani. He adds that Gold Fields already owns 9% of the stock.
"Gold Fields has been an active player in the exploration side of things for some time and currently has Advanced stage exploration drilling programmes underway in three places. So, there are likely to more such deals if they fit into the group's strategy.
"We are not looking to do any M&A heroics, especially not in this climate but, if there are deals out there that make sense then we will do them," he added.
Nick Holland, Chief Executive Officer of Gold Fields said, "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.
Gold Fields stock ended the day basically unchanged at R91.97