Dar es Salaam — Soon after striking an agreement with the Tanzanian government, shares in London-listed Acacia Mining Plc rocketed up more than 20 per cent.
Barrick Gold agreed that Tanzania would take a 16 per cent stake in three gold mines operated by Acacia but the agreement will be subject to approval by Barrick's independent directors as well as shareholders who hold 64 per cent shares in Acacia.
Shares at the London stock exchange shot up 20.49 per cent to 219.9p after the announcement was made at State house in Dar es Salaam.
At a news conference in Tanzania, Barrick chairperson John Thornton said the firm agreed to pay Tanzania $300m as a show of good faith.
The company and the government had been in talks for months working to resolve a dispute over an export ban, which has sent Acacia's shares spiraling since March.