Asec to Manage GMA’s Algerian Gold Mine

20 October 2009 (Last Updated October 20th, 2009 18:30)

Asec Mining will plan and supervise operations of GMA Resources' gold mine in south-west Algeria after Asec acquired a 10% stake in the company. The $3.1m acquisition will help leverage Egypt-based Asec's relative liquidity and help the company further expand into northern Africa, Asec'

Asec Mining will plan and supervise operations of GMA Resources' gold mine in south-west Algeria after Asec acquired a 10% stake in the company.

The $3.1m acquisition will help leverage Egypt-based Asec's relative liquidity and help the company further expand into northern Africa, Asec's media representative Moustafa Shafik said.

"They (GMA) don't have enough money, and they don't have a mining plan, and we are specialised in this," Shafik said.

The 1,425km² mine generated 18,000oz of gold in the first half of 2009, according to Reuters.

Both companies are in talks regarding revenue-sharing agreements and a timetable for development of the gold mine, Shafik said.

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