ACACIA Mining said it had agreed with partner OreCorp Tanzania that the company take 100% control of the Nyanzaga project which will see the UK-listed group receive $10m and retain a net smelter return production royalty up to a ceiling of $15m.
This follows approvals by the Tanzanian Fair Competition Commission for OreCorp to assume 51% control of the project, although the transaction remains subject to approval by the Mining Commission, and payment of $3m by Orezone to Acacia which comprises part of the $10m overall consideration.
“Both OreCorp and Acacia believe that a simplified ownership structure of NMCL (Nyanzaga) is beneficial to the future development of the project and would enable it to be best placed to provide significant benefits to Tanzania and all stakeholders,” it said.
Acacia first announced its intention to divest from Nyanzaga in July at the time of its interim financial results announcement in which it said it was “… on track to achieve the top-end of gold production guidance, put at 435,000 to 475,000 ounces for the 2018 financial year”.
RBC Capital Markets described Acacia’s numbers at the time as “a sideshow” compared to the firm’s existential struggle with the Tanzanian government which has imposed a number of restrictions on the firm’s business amid a dispute it is owed tens of billions in unpaid tax.
