South African miner Gold Fields has acquired a majority stake in Ireland-based exploration company Glencar Mining, valuing the company at approximately £28m.
Glencar shareholders will receive 9 pence sterling for each share for 80% of the issued capital of the company.
The proposed acquisition is part of Gold Fields' strategy to increase its footprint in the West African region, Gold Fields CEO Nick Holland 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,” said Holland.
Glencar's principal asset and only defined resource is the Komana project in West Africa, which has an indicated and inferred mineral resource of 1,250,000oz of gold within 150m of the surface, Gold Fields said.