24th Jun 2019 10:42
(Alliance News) - Acacia Mining PLC on Monday said it strongly disagrees with major shareholder Barrick Gold Corp's view of the company, but said an offer at a "fair" price would be attractive.
Canadian gold miner Barrick currently owns 64% of Acacia and has put in a USD787 million bid to buy the remaining stake in Acacia. The offer comprises of 0.153 new Barrick shares per Acacia share. Barrick has until July 9 to make a firm offer, although it told news agency Bloomberg News last week that it does not plan to raise its offer for Acacia.
"Acacia continues to believe that, subject to an offer price which is fair and which commands the requisite support of shareholders, the acquisition by Barrick of the Acacia shares it does not currently own, would be an attractive solution for key stakeholders," Acacia said.
Nonetheless, the company expressed strong disagreement with Barrick's view on Acacia's life of mine plans in Tanzania.
Moreover, the miner said Barrick had intervened in its negotiations with the Tanzanian government, "undermining Acacia in Tanzania". The firm noted that Barrick had not been invited to intervene, as Acacia was "continuing its own engagements with the highest levels" of the government with "no reason to believe that these engagements would not continue".
If it can't get a "recommendable offer from Barrick" then it will keep trying to negotiate a settlement with the government of Tanzania to lift the government's export ban and resume operations at its Bulyanhulu project.
"In the absence of a negotiated settlement to date, only as a fall-back, the independent directors of Acacia have sought to continue to protect the company's business through the contractual arbitration proceedings commenced in July 2017 by Bulyanhulu Gold Mine Ltd, the owner of Bulyanhulu, and Pangea Minerals Ltd, the owner of Buzwagi. The transaction committee notes, however, that there are also significant collateral risks in PML and BGML continuing to seek to protect their businesses through maintaining the arbitrations pending a negotiated resolution," said Acacia.
Shares in Acacia were down 0.2% at 181.92 pence on Monday morning.
Related Shares:
ACA.L