Tuesday, 18th October 2005 (2498 views)

Crew Gold has acquired Guinor Gold Corporation in a US$329 million takeover, the biggest in the gold industry this year.

Crew Gold has for some time been looking to diversify its portfolio as it believed being a one-project company was risky.

This new addition joins Crew Gold's currently operational Greenland mine and its other interests in the Philippines and now Guinea.

Its Greenland mine is predicted to produce 100,000 ounces of gold next year, while its 20 per cent stake in the Barberton mine in South Africa will yield an additional 20,000 ounces.

Guinor owns a South African mine, expected to produce 300,000 ounces of gold in 2007.

Under the deal, Guinor shareholders will be given C$1.50 for each share and the takeover is expected to be completed by the turn of the year.

 

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