News

March 31, 2009

Glencar Powers Ahead On The Strength Of Its Long-Standing Relationship With Goldfields

By Alastair Ford

Is Glencar becoming Goldfields’ exploration arm in Mali? “Not really”, says Hugh McCullough, Glencar’s chief executive, “but we do have a very good relationship with them and our African views do converge”. The question is pertinent because Glencar has just secured funding to the tune of a possible US$40 million from Goldfields for a stake in its Komana gold project in Mali. Goldfields is already an old friend, having spent US$5.5 million earning into some of Glencar’s other projects in Mali. Komana was always the prize, though. Indeed, back in the day, when Hugh McCullough was looking for funding for this incarnation of Glencar, Goldfields was originally offered first dibs not only on the assets that it subsequently went into joint venture with Glencar on, but also on Komana. This potential early tie-in got some way down the tracks before the unwanted attentions of Harmony distracted Goldfields and Glencar eventually went its own way.

By the time Goldfields came round for a second look Hugh was in a slightly different position. He’d raised £2 million in the markets on the strength of the potential for Komana, and wasn’t inclined to dilute his new friends on the say-so of Goldfields. So Komana stayed fully under the control of Glencar. Goldfields were, however, invited to take a look at some of the other Mali gold assets in the Glencar portfolio, which it duly decided it liked and signed a deal on. “Goldfields is very keen on...