Canada\u2019s Barrick Gold (TSX:ABX)(NYSE:GOLD) has been given three more weeks to make a firm offer for the percentage in Africa\u2019s Acacia Mining (LON:ACA)\u00a0it doesn\u2019t already own.<\/p>\n
The Toronto-based miner, which has a 63.9% stake in the African company, now has until July 9 to come up with a new bid, Acacia said in a statement<\/a>. The original deadline for the proposed takeover,\u00a0submitted in late May<\/a>, was set to expire on Tuesday.<\/p>\n Tanzania\u2019s No.1 gold producer also said it\u2019s open to an offer, \u201csubject to the price offered being fair and commanding the necessary support from shareholders.\u201d<\/p>\n Acacia has been embroiled in a\u00a0battle with Tanzania since 2017<\/a>, when the \u00a0government banned exports of unprocessed metal and slapped it with\u00a0a $190 billion tax bill<\/a>\u2014 equal to almost two centuries worth of revenue.<\/p>\n The company was also forced to cut output by a third from two of its three mines in the country \u2014 Bulyanhulu and Buzwag.<\/p>\n Since then, the relationship between Barrick and Acacia has been strained and progress moving an agreement forward has been \u201calmost impossible,\u201d\u00a0chief executive Mark Bristow\u00a0acknowledged last month<\/a>.<\/p>\n Confirming the deadline extension<\/a>, Barrick said it would allow for \u201cthe continuation of discussions with the independent directors and further engagement with Acacia\u2019s shareholders concerning the proposal.\u201d<\/p>\n The gold giant reiterated Tuesday its belief that the African miner\u2019s ongoing dispute with Tanzania\u2019s government has made it impossible for the miner to function as an independent public company.<\/p>\n \u201cIn the absence of a take-private transaction, Barrick does not consider there is any credible alternative solution which will preserve, to the extent possible, value for all stakeholders, and no such alternative has been presented by Acacia,\u201d it said in a separate statement<\/a>.<\/p>\n Acacia, which owns and operates Tanzania\u2019s three major mines,\u00a0is set to try resolving some of its issues with the government next month, in London, through international arbitration.<\/p>\n The new deadline given to Barrick may overlap with the legal proceedings, with most analysts opposed to the idea.<\/p>\n \u201cWe view [arbitration] as the least attractive outcome for minority holders,\u201d Berenberg said in a note published on Tuesday. \u201cIn this scenario, we would assume that the conclusion of the international arbitration case is likely to be the best way for it to preserve shareholder value.\u201d<\/p>\n