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Wednesday, 25th March 2009 (4470 views)

Glencar Mining has revealed that it has signed a new letter of intent with a subsidiary of Gold Fields regarding up to $40 million (£27.5 million) in funding for its Komana gold project in Mali, west Africa.

The terms of the conditional deal cover a joint venture agreement relating to Glencar's Komana licence, which involves involving exploration/feasibility study expenditures of up to $32 million in return for an interest of up to 65 per cent in the permit.

After the investment phase, Gold Fields will hold a 15 per cent interest in Glencar, which will in turn put up an equity investment of $3.2 million.

Glencar Mining said in a statement: "The successful conclusion of this deal will represent a major advance for Glencar, securing as it will, substantial exploration investment for the Komana project."

The firm added that the investment deal offers the possibility of it securing all future funding needed to create a mine development at Komana and to advance its Solana project.

Based in Dublin, Ireland, Glencar Mining is an exploration company focused on the development of gold deposits in Africa, in particular Mali, Ghana and Uganda.

 

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