SHARES IN Dublin-based exploration company Glencar fell by 13.8 per cent yesterday after it announced that it had pulled out of a proposed joint venture with large South Africa-based Gold Fields Ltd for the development of its Komana gold project in Mali.
This move comes just more than a week after Macquarie Bank, which owns 6.9 per cent of Glencar, opposed the transaction at the Irish company’s agm.
Glencar, which is listed on the IEX and AIM markets in Dublin and London respectively, and Gold Fields had signed a non-binding letter of intent on March 25th.
Gold Fields would have spent $32 million on exploration and a feasibility study in return for a 65 per cent interest in the Komana licence. Gold Fields would also have made an equity investment in Glencar of $3.2 million for a 15 per cent interest in the company.
An annual exploration option fee totalling $5 million over four years would also have been paid to Glencar. The Komana mineral resource is estimated at 1.25 million ounces of gold with a mean grade of 1.6 grammes a tonne.
Glencar said it would continue its “appraisal of other options”, including independent financing and possible mergers with other companies. Its shares closed in Dublin yesterday at 5 cent.
