{"id":1117289,"date":"2019-05-22T10:49:20","date_gmt":"2019-05-22T10:49:20","guid":{"rendered":"http:\/\/www.mining.com\/?p=988706"},"modified":"2019-05-22T10:49:20","modified_gmt":"2019-05-22T10:49:20","slug":"acacia-blames-barrick-for-barring-it-from-tanzania-talks-mulls-takeover-bid","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1117289","title":{"rendered":"Acacia blames Barrick for barring it from Tanzania talks, mulls takeover bid"},"content":{"rendered":"

Barrick Gold\u2019s subsidiary Acacia Mining (LON:ACA) condemned its parent company on Wednesday<\/a> for keeping it out of the discussions with the government of Tanzania about a long-running row<\/a> over outstanding tax claims.<\/p>\n

The African miner\u2019s comments come on the heels of the Canadian gold giant\u2019s bid to take full control of the company<\/a>, which is Tanzania\u2019s No. 1 gold miner.<\/p>\n

Toronto-based Barrick has proposed to buy the remaining 35% of Acacia it does not already own through an all-stock offer pitched at a discount, arguing that the plan offers a route to end Acacia\u2019s crippling dispute with Tanzania\u2019s government.<\/p>\n

Barrick said it made the $285m-takeover bid because it was clear the government of Tanzania was not prepared to deal directly with Acacia and settle their long-running tax row.<\/q><\/p>\n

The $285 million proposal made to Acacia\u2019s board and management will offer 0.153 of Barrick shares for each of Acacia\u2019s and implies a valuation of $787 million for the whole unit.<\/p>\n

\u201cSince the proposal is in Barrick shares, the Acacia minority shareholders will be able to benefit from any future potential upside in both the Acacia assets and Barrick’s broader portfolio of assets,\u201d Barrick said in the statement<\/a>.<\/p>\n

The offer, it noted, was made after realizing that the government of Tanzania was not prepared to deal directly with Acacia to settle their differences.<\/p>\n

\u201cAs a consequence of the negotiations with the government of Tanzania, Barrick has had the opportunity to undertake detailed due diligence on the Acacia assets and on the basis of this work has concluded that the proposal on the terms set out above reflects the fair value of the company,\u201d it said.<\/p>\n

Faith in\u00a0Bristow<\/strong><\/h3>\n

For about two years<\/a>, Barrick has been leading negotiations with President John Magufuli\u2019s administration, first under executive chairman John Thornton<\/a> and, more recently, under\u00a0chief executive\u00a0Mark Bristow.<\/p>\n

The South African geologist,\u00a0who spent decades finding and building his own mines in Africa, has been considered by many analysts as the only one who could effectively end the row over unpaid taxes claims.<\/p>\n

Barrick has until June 18 to decide if it will follow through with a firm offer.<\/q><\/p>\n

A framework deal reached in February<\/a> proposed that Acacia would pay $300 million to settle the tax claims and agree to split returns from operations with the country going forward. But Acacia has maintained its position that before approving any agreement its board should review it first.<\/p>\n

\u201cIn our opinion, the bid value reflects the $300m tax payment that has been negotiated between Barrick and the government of Tanzania, which becomes payable once a resolution is ratified,\u201d Jefferies\u2019 analysts wrote in a note on Wednesday.<\/p>\n

\u201cAcacia notes that it continues to be excluded from the discussions between Barrick and the government of Tanzania,\u201d it said. \u201cIn the meantime, Acacia shareholders are strongly advised to take no further action.\u201d<\/p>\n

The company, which owns and operates Tanzania\u2019s three major mines \u2014 Bulyanhulu, Buzwagi and North Mara, also said it would seek to clarify the position of Tanzania\u2019s government.<\/p>\n

Barrick has until June 18 to decide if it will follow through with a firm offer.<\/p>\n

The post Acacia blames Barrick for barring it from Tanzania talks, mulls takeover bid<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Comments come after parent company Barrick Gold proposed to acquire all of the shares it does not already own in the Tanzanian miner.<\/p>\n

The post Acacia blames Barrick for barring it from Tanzania talks, mulls takeover bid<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[978,979,421,404,369,391,2640],"tags":[9,25,33,48,105,108],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117289"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1117289"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117289\/revisions"}],"predecessor-version":[{"id":1117361,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1117289\/revisions\/1117361"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1117289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1117289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1117289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}