Barrick Gold tables proposal to buy remaining Acacia shares

23 May 2019 (Last Updated May 23rd, 2019 12:45)

Canadian mining company Barrick Gold has made a proposal to purchase all the Acacia Mining shares that it does not hold, through a share-exchange programme.

Barrick Gold tables proposal to buy remaining Acacia shares
Barrick Pascua Lama project area. Credit: Antonio Gritta.

Canadian mining company Barrick Gold has made a proposal to purchase all the Acacia Mining shares that it does not hold, through a share-exchange programme.

The proposal, presented to the senior management of Acacia, involves an exchange of 0.153 Barrick shares for each ordinary share of Acacia.

As part of the deal, which values Acacia at $787m, Barrick will pay $285m as consideration to the minority shareholders.

The move comes at a time when Barrick has been negotiating with the Government of Tanzania for two years to settle Acacia’s tax disputes in the country. The negotiations also seek to establish a proper framework to enable Acacia to resume full operations in Tanzania.

Acacia has been charged by the government of evading taxes by manipulating gold export declarations, reported Reuters. However, the mining company denied the allegation.

An agreement between Barrick and the Tanzanian Government is yet to be reached as the latter has expressed apprehensions about entering into a settlement with Acacia directly.

Headquartered in the UK, Acacia Mining is a gold mining business operating in Tanzania. The company owns three mines in the country, all located the north-west.

As the proposal involves an exchange of Barrick shares, the Canadian company noted that the proposal will be beneficial to the Acacia minority shareholders from any potential upside in Acacia or Barrick assets in future.

The proposal is subject to several customary conditions including the approval of the Acacia board.

Last month, Barrick Gold and Newmont cleared regulatory conditions for their joint venture (JV) in Nevada, US.

The Barrick-led JV plans to create the world’s largest gold producing complex.