6th Sep 2018 11:17
LONDON (Alliance News) - Acacia Mining PLC on Thursday said its project partner, OreCorp Tanzania Ltd, secured an approval from the Tanzanian Fair Competition Commission to increase its interest in Nyanzaga Mining Co Ltd to 51%.
The gold mining company said the transaction remains subject to the approval of the newly established Mining Commission and payment of USD3 million to Acacia.
In addition, Acacia agreed to allow OreCorp Tanzania to move to 100% ownership of Nyanzaga Mining, and thereby 100% ownership of the Nyanzaga gold project.
In order to complete the acquisition, OreCorp Tanzania has to get the Tanzanian regulatory approvals, the grant of the special mining licence and complete USD7 million payment to Acacia.
Upon completion, Acacia will retain a net smelter return production royalty over the project, capped at USD15 million.
Shares in Acacia were trading 1.3% higher on Thursday at 11.95 pence each.
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