Acacia has not yet received any proposal from Barrick regarding a comprehensive resolution of the Company’s disputes with the Government of Tanzania. Any proposal received by Acacia will be subject to review by the Independent Committee of the Acacia Board of Directors
Acacia Mining has announced that despite an agreement that was announced earlier in the week of an agreement between Barrick Gold and President John Magufuli, it will need time to study the agreement before taking any move.
The mining company with several mines in Tanzania noted that it was aware of recent meetings but Barrick Gold, the parent company has yet to deliver the content of the resolution and when it will be delivered, it will still have to undergo scrutiny of its directors.
The company said in a statement, “Acacia has not yet received any proposal from Barrick regarding a comprehensive resolution of the Company’s disputes with the Government of Tanzania. Any proposal received by Acacia will be subject to review by the Independent Committee of the Acacia Board of Directors.”
Barrick Gold had announced that the it has, in its capacity as a facilitator, and the Government of Tanzania arrived at a proposal that sets forth the commercial terms to resolve outstanding disputes concerning Acacia Mining plc’s operations in Tanzania.
The proposed framework is consistent with the agreement announced in October 2017 and includes the creation of a local operating company to manage Acacia’s operations in the country as well as the economic benefits from Acacia’s operations to be shared on a 50/50 basis.
The Government’s share of economic benefits would be in the form of royalties, taxes and a 16 percent free carry interest in the Tanzanian operations. Equally, a payment of $300 million is to be paid to the Government of Tanzania to resolve outstanding tax claims, to be paid over time on terms to be settled by the parties.
Mark Bristow, President and CEO of Barrick, said: “Significant amounts of real value have been destroyed by this dispute and, in Barrick`s view, this proposal will allow the business to focus on rebuilding its mining operations in partnership with their respective stakeholders, and most importantly long suffering investors, including Barrick”.
Work is underway to finalize the definitive agreements needed to give effect to the proposal. To become effective, the proposal and those agreements must be approved by Acacia and the Government of Tanzania, in keeping with applicable laws and regulations. Barrick holds a 63.9 percent equity interest in Acacia, a publicly traded company listed on the London Stock Exchange that is operated independently of Barrick.