Ascom Precious Metals, a subsidiary of Asec Company for Mining (Ascom), has signed a pact to acquire a nine per cent stake in UK-listed gold exploration and production firm GMA Resources for consideration of £1.9 million (Dh11.4m).

Ascom is Citadel Capital's platform company for investment in the regional mining sector.

The deal comes as part of Ascom's strategy to grow its precious metals mining division and expand its mining operations throughout North and East Africa.

GMA, whose shares are traded on the London Stock Exchange's AIM, has a controlling 52 per cent stake in Enor, a highly-promising Algerian gold exploration and production operation located in the country's southern Tirek-Amesmessa region.

"The acquisition was a perfect fit for Ascom as the company looks for regional expansion opportunities," said Karim Sadek, Managing Director at Citadel Capital, the region's leading private equity firm.

"We already have five gold mining concessions in Ethiopia and are in the process of negotiating additional concessions in Sudan and Egypt," he said.

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