Randgold Resources: Land deals with junior rivals eyed

Published Feb 4, 2014

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Randgold Resources was looking to do deals with smaller rivals, it said yesterday, as they ran out of cash because of the collapse in the gold price. “We are constantly talking to juniors who have run out of cash,” chief executive Mark Bristow said. “We want to consolidate our land positions within the footprints we have chosen.” Gold exploration companies are looking for partners or funding after prices for the metal slid 28 percent last year, the biggest annual drop since 1981, cutting off funds to the industry. Randgold currently mines in Mali, Ivory Coast and the Democratic Republic of Congo. Randgold would look to take over the land permits of smaller rivals and run exploration at these sites, Bristow said. The company would seek to hold 51 percent of projects, potentially rising to 65 percent as it invested more in the search for new production. – Bloomberg

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