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Dar es Salaam Acacia Mining Company will forgo the establishment of another gold mine in Tanzania after agreeing to sell its stake in the Nyanzaga gold project in the Shinyanga region.
OreCorp Tanzania Limited paid $ 3 million to Acacia The company also signed an agreement with OreCorp for the 100 percent acquisition of the project, saying that the full ownership of its partner would best suit the interests of Tanzania.
However, the agreements to increase OreCorp's participation and the final acquisition of the mining project will depend on the approvals of the Fair Trade Commission of Tanzania (FCC) and the new Mines Commission . Applications for authorization and issuance of a special mining license have been filed with the authorities
The Nyanzaga gold project was to become Tanzania's new gold mine under Acacia, after the North Mara, Buzwagi and Bulyankhulu gold mines. Exploratory work on the Nyanzaga Project has reduced the Mineral Resource Estimate (MRR) from 3.1 million ounces to 4.0 g / t gold, which justifies the development of the project. Establishment of a large-scale mine
. results published Friday as well as in a brief posted by OreCorp on its website. OreCorp first secured a 25% interest in the project under a takeover agreement in September 2015.
The gold project is known as Nyanzaga Mining Company Limited (NMCL) and was a wholly owned subsidiary of Acacia. OreCorp stated that it has fulfilled its compensation obligations by spending about $ 14 million (30.8 billion shillings) to complete a feasibility study for the planned mine.
According to the companies, OreCorp will move to 100% ownership of NMCL by making an additional payment of $ 7 million (15.4 billion shillings). Acacia will also earn a net smelter return royalty (NSR) of $ 15 million (Sh.33bn).
Nyanzaga gold mine is likely to be the first to see the Tanzanian government become a shareholder holding a free interest of not less In its brief, Acacia also noted that the talks between the government and its parent company, Barrick Gold, were still in progress in order to reach an acceptable roadmap for the implementation of the agreed framework of cooperation. with the government in 2017.
The company said the delay in the conclusion of an agreement put an end to its discussions with potential Chinese companies that have shown interest in the company. purchase of one or more of its mines in Tanzania. in June of this year, it would not provide a timetable for the completion of its discussions with the government "to allow its process to proceed in an orderly manner and without arbitrary delay".
The company also pointed to ongoing tax litigation with the government regarding VAT returns that currently amount to $ 64 million (140.8 billion shillings) for exports alone and 172.5 million of dollars (379.5 billion shillings) outstanding as of June 30, 2018. [19659002] Acacia said that it has submitted to the government preliminary plans of local content and hopes to reach a solution with the authorities. He said, however, that international arbitrations filed by the Buzwagi and Bulyanhulu gold mines will continue to protect the interests of the mine before any settlement in the ongoing talks between the government and Barrick Gold
. He said he managed to generate cash because of the strong operational performance of his mines.
The London-listed miner said earnings before interest, taxes, depreciation and amortization (EBITDA) fell to $ 133.6 million ($ 293.9 billion) from $ 161 million ($ 354.2 million). billion shillings) a year earlier.
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