Tanzania government cuts all ties with Acacia

Acacia Mining

According to Acacia Mining, discussions between Barrick Gold Corporation and the Tanzania government to resolve disputes between itself and the government are making significant progress. Sadly, Acacia Mining has been excluded from these discussions and expects massive changes to its structure moving forward as Tanzania has no interest in engaging directly with the company.

Barrick has provided Acacia with a set of documents which it has indicated have been extensively negotiated but not yet finalised.

Barrick has also provided the company today with a letter from the Acting Chairman of the Tanzania government negotiating team who have been in discussions with Barrick, dated 19 May 2019, addressed to Acacia’s three operating companies, Bulyanhulu Gold Mine Limited, North Mara Gold Mine Limited and Pangea Minerals Limited.

This letter states that the government is resolved that it will not execute final agreements for the resolution of the company’s disputes if the company is one of the counterparties to the agreements, and that it will only sign such agreements “if satisfied that substantial changes have been made to the management style of the operating companies and of their shareholders”.

Acacia also notes that it has received today an indicative proposal from Barrick to acquire all the issued and to be issued share capital of the company not already owned or controlled by Barrick.

The consideration would be in the form of new common shares in Barrick, with Acacia shareholders receiving 0.153 of a new common share of Barrick for every ordinary share in Acacia.

The board is considering these developments, and will be taking steps to seek clarification of the Tanzania government’s position.

For now, Acacia shareholders are strongly advised to take no action.

This announcement by Acacia was made without the consent or approval of Barrick.

More Info https://www.miningreview.com/gold/tanzania-government-cuts-all-ties-with-acacia-barrick-tries-to-save-the-day/

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