Lun 19 Sep 2011 18:37
Rick Clark eyes First Quantum Guelb Moghrein-sources
Mon Sep 19, 2011 10:10am EDT
By Julie Crust
LONDON, Sept 19 (Reuters) - Rick Clark, former chief executive of Red Back Mining Inc, has approached First Quantum Minerals with a view to buying the Guelb Moghrein copper and gold mine in Mauritania, people familiar with the matter told Reuters.
"There is a proposal that has been made," said one source, while another said Clark was seeking to raise about $800 million in financing for a potential offer.
Guelb Moghrein is one of First Quantum's two operating mines alongside Kansanshi in Zambia. Guelb Moghrein produced almost 37,000 tonnes of copper in concentrate and 81,766 ounces of gold in 2010 and copper output is anticipated to rise to about 50,000 tonnes by 2012.
The mine accounted for just over 10 percent of First Quantum's revenue in the six months to end June.
Analysts said a sale would allow First Quantum to unlock the mine's value to raise money that could be used for its key Zambia operations or exploration projects. "I think First Quantum would be better off selling it. If they can get something north of $700 million that would make sense," said Numis Corp analyst Andy Davidson.
"I guess that with it not being a core asset, they will probably take a view on it just to free up some management time," said Davidson. "That is as much a consideration as the capital."
Clark knows all about operating in Mauritania. The flagship asset for Red Back, which was acquired by Kinross Gold for $7.1 billion in August 2010, was the Tasiast gold mine in the West African country.
Clark stepped down from the Kinross board in July to focus on other ventures in the mining industry.
Clark could not be reached for comment and a spokesman for First Quantum declined to comment. (Editing by Paul Hoskins and Hans-Juergen Peters)
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( Pierre Mac Orlan )
( Pierre Mac Orlan )
