22nd Sep 2015 07:09
LONDON (Alliance News) - Acacia Mining PLC on Tuesday said it has signed a joint venture agreement with OreCorp Ltd for the Nyanzaga gold project in Tanzania.
FTSE 250-listed Acacia said OreCorp will act as the manager of the project and will have the right to earn up to a 25% stake through completing a number of work milestones over a three-year period for an aggregate investment of up to USD15.0 million.
The investment OreCorp will make includes a USD1.0 million upfront payment to Acacia.
"We are pleased to have reached an agreement with OreCorp for them to earn-in to and progress the Nyanzaga Project. The structure of the joint venture allows us to continue our focus of delivery from our existing mines whilst retaining the optionality to participate in the potential future development of a large-scale gold mine," said Brad Gordon, Acacia's chief executive.
Shares in Acacia were up 0.6% to 250.9 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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