logo
  

Acacia Mining Provides Update On Tanzania Discussions; Possible Barrick Offer

Acacia Mining plc (ACA.L) said Wednesday that it has received an update today from Barrick Gold Corp. (ABX,ABX.TO) on the status of Barrick's negotiations with the Government of Tanzania to seek to identify a proposed resolution to Acacia's disputes with the GoT. However, Acacia noted that it remains excluded from the discussions between Barrick and the GoT.

The company said Barrick has informed it of the significant progress that company has made towards finalizing a proposed resolution. Barrick has provided Acacia with a set of documents which it has indicated have been extensively negotiated, but not yet finalised.

In addition, Barrick has provided Acacia with a letter from the Acting Chairman of the GoT negotiating team who have been in discussions with Barrick.

The letter, dated May 19, 2019, is addressed to Acacia's three operating companies, Bulyanhulu Gold Mine Limited, North Mara Gold Mine Limited and Pangea Minerals Limited.

According to Acacia, the letter states the GoT is resolved that it will not execute final agreements for the resolution of Acacia's disputes if the company is one of the counterparties to the agreements.

The GoT said 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".

Further, Acacia said it has received 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.

Acacia Mining said its board is considering these developments, and will take steps to seek clarification of the GoT's position. The company will make a further announcement in due course.

In the meantime, Acacia advised its shareholders to take no action on the Barrick proposal.

Separately, Barrick Gold said its proposal assumes no further dividends will be paid by Acacia following the date of the proposal.

Barrick noted that the proposal implies a value for Acacia of $787 million and total consideration to the minority shareholders of Acacia of $285 million.

Barrick added that it will have the right to reduce the number of new Barrick shares that Acacia minority shareholders will receive under the terms of the proposal by the amount of any dividend which is declared, or made by Acacia to Acacia shareholders.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Flavor maker McCormick & Co., Inc. is recalling certain McCormick and Frank's brand seasoning products citing possible salmonella risk, the U.S. Food and Drug Administration said. The recall involves McCormick Perfect Pinch Italian Seasoning, McCormick Culinary Italian Seasoning and Frank's RedHot Buffalo Ranch Seasoning. Drug major Pfizer Inc. raised Wednesday its outlook for fiscal 2021 earnings and revenues following strong second quarter results that exceeded market estimates. According to the company, the upward revision in full-year outlook, for the second quarter in a row, reflects its updated expectations for contributions to 2021 performance from both BNT162b2, the Pfizer-BioNTech SE COVID-19 vaccine. While reporting financial results for the second quarter on Wednesday, biopharmaceutical company Bristol-Myers Squibb Co. (BMY) reaffirmed its adjusted earnings and revenue growth guidance for the full-year 2021. For fiscal 2021, the company now projects earnings in a range of $3.18 to $3.38 per share,...
Follow RTT