An agreement was signed to increase OreCorp Tanzania’s interest in the project to 100%. Credit: Acacia Mining plc.

OreCorp Tanzania has received approval of the Tanzanian Fair Competition Commission (FCC) to increase its stake in Nyanzaga Mining Company (NMCL), which holds a 100% interest in the Nyanzaga gold project, to 51%.

OreCorp Tanzania signed an earn-in agreement with Acacia Mining over the project in September 2015.

Go deeper with GlobalData

Go deeper with GlobalData

The gold standard of business intelligence.

Find out more

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

“Both OreCorp and Acacia believe that a simplified ownership structure of NMCL is beneficial to the future development of the project.”

In July this year, the company completed the earn-in phase by investing around $14m towards a pre-feasibility study and related work.

In addition, OreCorp Tanzania elected to buy a further 26% stake in the project by paying $3m to Acacia and the approval of the FCC has been granted now in this regard.

However, the transaction is still conditional on the approval of the Mining Commission and the payment of $3m to the Acacia Group.

Simultaneously, OreCorp signed a completion agreement in order to allow OreCorp Tanzania to increase its ownership of the Nyanzaga project to 100%.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

The completion of the transaction is subject to certain conditions including the receipt of the Tanzanian regulatory approvals, and obtaining the Special Mining Licence (SML) for the project.

Furthermore, OreCorp Tanzania is required to make an additional payment of $7m to clinch the deal.

Once the company becomes a 100% owner of the project, Acacia will have a net smelter return (NSR) royalty over production from the project, capped at $15m.

In a statement, Acacia Mining said: “Both OreCorp and Acacia believe that a simplified ownership structure of NMCL is beneficial to the future development of the project and would enable it to be best placed to provide significant benefits to Tanzania and all stakeholders.”

Nyanzaga is estimated to contain mineral resource of 3.1 million ounces at 4g/t gold.

Acacia’s operating mines in Tanzania include North Mara, Bulyanhulu and Buzwagi.

Mining Technology Excellence Awards - Nominations Closed

Nominations are now closed for the Mining Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact

Excellence in Action
Recognised with the Research & Development Award , Nokia’s Cognitive Digital Mine uses AI, IoT and digital twin technology to deliver predictive, self-optimising mining operations. Learn how Nokia’s Digital Twin Black Box is enabling safer, more efficient and more profitable mines worldwide.

Discover the Impact