Georgina Energy Regulatory News (GEX)

8 Dec 2005 07:00

Glencar Mining PLC08 December 2005 GLENCAR MINING PLC GLENCAR ANNOUNCES IMPORTANT PROGRESS AT SANKARANI Glencar Mining plc ("Glencar") is pleased to announce a number of importantdevelopments in respect of its Sankarani Project in Mali. Option Agreements Glencar has signed agreements with Africa Resources s.a.r.l. ("AfricaResources") and La Societee Malienne de la Petite Mine d'Or s.a.r.l. ("PetiteMine"), whereby, in consideration of the issue of 212,500 new shares in Glencarto each of Africa Resources and Petite Mine, they have granted Glencar theoption to acquire their residual 5% interest in the Bokoro, Sanioumale, Farasabaand Komana licences in Mali (the "Option") for a payment of US$1,000,000,payable in cash or shares, at Glencar's election. The Option is exercisable byGlencar at any time up to 90 days following the time when senior finance for amine within the licence area has been secured and accepted. Previously announced discussions with Gold Fields Limited ("Gold Fields") havecontinued towards the completion of a binding legal agreement through which GoldFields may earn a 65% interest in the three licences at Bokoro, Sanioumale andFarasaba. If Gold Fields earns the 65% interest and Glencar exercises theOption, Glencar would then hold a 25% interest in the licences, with the MaliGovernment holding the remaining 10%. Glencar expects to be in a position tomake a further announcement in relation to the proposed agreement with GoldFields shortly. A fourth licence in the Sankarani area, the Komana Licence, is currently beingdrilled by Glencar. The Komana Licence is not incorporated in the proposedagreement with Gold Fields, and exercise of the Option would mean that Glencarwould hold up to 90% of the Komana Licence, with the Mali Government holding theremaining 10%. The proposed agreement with Gold Fields does provide a right offirst refusal to Gold Fields in the event Glencar wishes to seek a partner forthe further development of the Komana Licence. Solona Licence Glencar has acquired the rights to a fifth licence in the Sankarani area, atSolona. This licence is 250 square kilometres in area and is currently held byAfrica Resources. Glencar has a 51% interest in the licence at this point andcan acquire a 90% interest in the licence (the remaining 10% reserved for theMali Government) through payments of US$20,000 over a two year period. The Solona licence lies within geologically and structurally prospective terrainadjacent to the Komana licence. Glencar has already acquired a significantdatabase of previous work on the licence which shows many very well definedgeochemical anomalies, none of which has been drill-tested by the formerlicencees. For Further Information contact: Glencar Mining plcHugh McCulloughTel: +353 1 661 9974e-mail: info@glencarmining.ie Heneghan PRRachel WatchornTel: +353 1 6607395e-mail: rachel@hpr.ie 8 December 2005 This information is provided by RNS The company news service from the London Stock Exchange