Gold explorer Glencar Mining proposes to raise £2.37 million at 10.5p to advance projects in Mali and Ghana.

Australia’s Macquarie Bank has subscribed to 42 per cent of the placing, which is being handled for Dublin-based Glencar by Cenkos Securities in London and by broker Davy across the water. Hugh McCullough, AIM-listed Glencar’s longstanding managing director, says the proceeds will be used to continue exploration and drilling at targets in southern Mali and Ghana.

A particular focus is Komana in west Mali, where drilling results to date have been ‘very positive’. New drill assay results are expected within the next two weeks from Komana West. Work has temporarily paused there to allow the company’s rig to complete initial drilling at the Solona prospect next door.

Glencar is continuing at another prospect, Sankarani, a joint venture with major mining group Gold Fields. The deal entitles Gold Fields to earn up to 65 per cent in three of Glencar’s exploration licences, excluding Komana West, by spending up to £6 million on exploring.

Originally fully listed, Glencar’s shares tumbled from more than 10p in 2000 to 1.25p two years later, when its original Wassa project in Ghana proved a disappointment. Since joining AIM in 2005, the price has swung between 2.25p and 15p and now stands at 10.75p, valuing the company at £25.3 million.

The appeal is speculative.

Glencar Mining	AIM	£8.22m	3.00p	0.00p
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Other company articles:
Resource lift for Glencar			24/10/2008
Exploration Insights by Robert Tyerman			02/06/2008
Mali progress cheers Glencar			30/05/2008
More Mali magic at Glencar			09/05/2008
Glencar seeks £2.4m			26/04/2007