Barrick Gold reaches deal for Acacia Mining after raising offer for company
The Canadian PressIndustry Mining & Resources
TORONTO – Barrick Gold Corp. has reached a deal to buy the stake in Acacia Mining that it does not already own, after raising its offer for the African gold miner.
Under the deal, Barrick will swap 0.168 of a Barrick share for each share of Acacia in a transaction that values the company at about $1.56 billion (951 million pounds).
Acacia shareholders will also be entitled to receive special dividends related to Acacia exploration properties and deferred cash consideration dividends paid as a result of the sale of certain Acacia exploration properties.
Barrick, which owns about a 63.9 per cent stake in Acacia, had previously offered 0.153 of a Barrick share for each Acacia share in May.
Shares in Barrick shares have risen from about $16 at the end of May to $22.46 on the Toronto Stock Exchange on Thursday.
The Toronto-based gold miner has been working to help settle a tax dispute between Acacia and the government in Tanzania. Earlier this week, Acacia said Tanzania ordered it to stop using a tailings storage facility at its North Mara mine due to seepage from the facility.