27th May 2010 07:39
27 May 2010
African Barrick Gold plc (the "Company" or "ABG") Completion of acquisition of 100% of Tusker Gold Limited ("Tusker")
As previously communicated, on 21 April 2010 BUK Holdco Limited ("BUK"), a wholly-owned subsidiary of ABG, commenced a compulsory acquisition procedure to acquire the ordinary shares of the Australian-listed company Tusker which were not tendered in BUK's takeover offer. This procedure has now completed and BUK now owns 100% of the outstanding ordinary shares of Tusker. The total consideration paid by BUK for 100% of Tusker amounted to AUS$80,000,000 / US$71,123,103 (based on an actual exchange rate of US$1 to AUS$1.125). Tusker has also been delisted from the Australian Securities Exchange.
Following completion of the compulsory acquisition process, ABG's interest in the Nyanzaga Project has now increased to 100%. The Nyanzaga Project covers more than 350 square kilometres in the Lake Victoria Goldfields and hosts the Tusker deposit for which a total indicated and inferred resource of approximately 4.2 million ounces was reported in June 2009.
Commencing in June 2010, ABG plans to undertake an initial six month drill programme of approximately 40,000 metres. This will be aimed at expanding the current resource model and increasing the global resource in and around the currently defined area. There will be further drilling across several earlier stage projects in the broader project area with a view to identifying incremental resources.
Commenting on the transaction, Greg Hawkins, CEO, said: "The consolidation of the Nyanzaga JV brings an exciting project into our pipeline with ABG as the 100% owner. It has the potential to add significant production ounces to ABG's future profile and we are pleased to complete our first acquisition following the IPO and to move ahead with our strategy of adding value to the company through pursuing growth opportunities."
ENQUIRIES
For further information contact:
African Barrick Gold plc
Kevin Jennings +44 (0)207 655 5581
Finsbury + 44 (0)20 7251 3801
Andrew Mitchell
Charles Chichester
This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of ABG in any jurisdiction.
This announcement includes "forward-looking statements" that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "plans," "expect," "anticipates," "believes," "intends," "estimates" and other similar expressions.
All forward-looking statements involve a number of risks, uncertainties and other factors, and ABG cannot give assurances that such statements will prove to be correct. Risks, uncertainties and other factors could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, general economic and business conditions, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand and Tanzanian shilling exchange rates), ABG's ability to successfully integrate future acquisitions, to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, changes in its business strategy and political and economic uncertainty, as well as risks and hazards associated with the business of mineral exploration, development and mining. Although ABG's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of ABG, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, forward-looking information and statements. Investors should not place reliance on forward looking statements in this announcement. Any forward looking statements in this announcement only reflect information available at the time of preparation. Subject to the requirements of, the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this announcement that may occur due to any change in ABG's expectations or to reflect events or circumstances after the date of this announcement. Nothing in this announcement should be construed as a profit forecast or estimate.
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vendorRelated Shares:
ACA.L