Acacia Mining
Acacia Mining's North Mara mine if Tanzania. Photo: Acacia Mining

Acacia Mining is engaging with a small number of interested Chinese parties to explore the potential sale of a stake in one or more of its Tanzanian assets, the gold miner stated in a press release on its unaudited results for the six months ended 30 June 2018.

The decision by Acacia Mining to pursue possible asset sale discussion is in response to having received a number of indicative expressions of interest in the company’s assets from Chinese companies.

Dual-listed Barrick Gold, Acacia Mining’s largest shareholder, has been caught in a tax dispute with the Government of Tanzania for close to a year.

As a result of the current uncertainty in the operating environment in Tanzania as a result of the new Mining Act and the on-going disputes with the Government of Tanzania, Acacia mining said that the timetable and successful completion of any discussions in relation to any such transaction is likely to be inextricably linked to the company’s ability to reach a comprehensive agreement with the Government of Tanzania in order to settle historic disputes and provide a stable future operating environment.

“No significant progress is expected to be made on a potential transaction until there is a clearer picture of the likely outcomes of Barrick’s discussions with the Government of Tanzania,” the press release read.

Acacia Mining says that it remains committed to shareholder value and evaluates all opportunities against strict strategic and financial criteria.

“Any transaction will be pursued only if it is determined by Acacia’s board to be in the best interests of the company. There is currently no certainty as to whether any agreement will be reached with any of the potential investors.”