Algy strikes gold in £3m Cluff deal

CLUFF Mining gave a new definition to selling off the family silver today by agreeing to hand over its gold interests to non-executive chairman Algy Cluff's new business for $5m (£3m).

Algy, the veteran City figure, mining investor and former proprietor of The Spectator magazine, is launching a new exploration company, Cluff Gold, which he hopes to float on the Alternative Investment Market next spring.

Today's deal will give him the perfect head start. He grabs Cluff Mining's 78% interest in the Kalsaka mine in Burkina Faso, as well as gold exploration projects in Zimbabwe, Ghana and Senegal.

Cluff Mining is switching its focus to concentrate exclusively on platinum metals and chief executive Terence Wilkinson sought to quash any controversy over the deal by saying it was the only one on the table.

'This is substantially better than any deal would have done in the market place. It is anything but a golden handshake or any reference to that effect, he said.

Wilkinson added the transaction had complied with rules governing deals with 'related parties'.

Under today's deal, Algy is paying Cluff Mining $250,000 for an option to acquire its gold interests. This has to be exercised either by next September or within two weeks of Cluff Gold floating on AIM.

The group said its non-executive director Nicholas Berry 'is also interested' in Cluff Gold. Algy, 63, moved to a non-executive role two months ago.

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