19 June 2019

Tanzania: Deadline Extended for Acacia Takeover

Global mining firm Barrick Gold Corp has extended the deadline to take control of the remaining Acacia Mining Plc shares for 20 more days from June 18 to July 9, 2019.

According to Acacia, Barrick, which holds majority shares (63.9 per cent), has requested that the Tanzania miner seek an extension to the "put up or shut up" (PUSU) deadline, "in order to provide further time to determine a proposal that might receive sufficiently shareholder support."

Acacia announced on June 18 that it supported the deadline extension order to facilitate further engagement with its minority shareholders.

Last month, Barrick proposed to take control of Acacia's share capital to end a two-year dispute between the mining firm and the Government of Tanzania after Tanzania refused to finalise the deal with Acacia still in the picture.

Acacia mining operates in Tanzania in three mines: Bulyanhulu, North Mara and Pangea Minerals Limited.

For two years, Tanzania has blocked exports of gold and copper concentrate from Acacia mines and slapped the miner with $190 billion bill for tax evasion.

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The tax bill was for historical corporate income tax for the period between 2000 and 2017. Tanzania said Acacia owes it $40 billion in unpaid taxes and $150 billion in penalties and interest.

The new deadline for the takeover will only be extended with the consent of the UK Takeover Panel in accordance with Rule 2.6(c) of the Code.

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