Acacia Mining plc (LON:ACA) noted that it has received an update today from Barrick Gold Corporation on the status of Barrick’s negotiations with the Government of Tanzania to seek to identify a proposed resolution to the Company’s disputes with the GoT. Acacia notes that it continues to be excluded from the discussions between Barrick and the GoT.
Barrick informed the Company that it has made significant progress towards finalising a proposed resolution, and provided the Company 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 GoT negotiating team who have been in discussions with Barrick, dated 19th May 2019, addressed to the Company’s three operating companies, Bulyanhulu Gold Mine Limited, North Mara Gold Mine Limited and Pangea Minerals Limited. This letter states that the GoT 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”.
The Company 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 GoT’s position. A further announcement will be made in due course. In the meantime, Acacia shareholders are strongly advised to take no action.
This announcement is being made without the consent or approval of Barrick.