Cambridge Mineral Resources, the publicly-quoted company with mineral interests in Donegal, has acquired South Atlantic Resources Limited (SARL), a mineral exploration company with interests in the Falklands Islands.

The acquisition is costing Cambridge £300,000 sterling, although the company described the move as a "friendly merger". Shareholder approval for the issuing of one and a half million new shares and four million warrants will be needed before the acquisition goes ahead.

SARL has a several mineral interests in the Falklands and initial field work carried out by the company has been positive. An exclusive prospecting licence is expected to be granted shortly to SARL for a period of six years and this will enable an extensive mineral appraisal to be conducted over large areas of the islands.