Acacia Mining: Notices of Arbitration Served on behalf of BGML, PML

Features Dow Jones Newswires

Acacia Mining PLC (ACA.LN) said Tuesday notices of arbitration were served in Tanzania on behalf of Bulyanhulu Gold Mine Ltd. (BGML), the owner of the Bulyanhulu mine, and Pangea Minerals Ltd. (PML), the owner of the Buzwagi mine.

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Last month, Acacia said it had experienced some impact to production levels given the uncertainty surrounding the Presidential Committee's investigation into the export of gold/copper concentrates.

The serving of the notices at this time is necessary to protect the company, but, this notwithstanding, Acacia remains of the view that a negotiated resolution is the preferable outcome to the current disputes and the company will continue to work to achieve this, Acacia said Tuesday.

The Government of Tanzania has informed Barrick Gold Corporation (ABX) that at this stage it wishes to continue their dialogue, and therefore Acacia will not participate directly in these discussions when they commence. Any potential resolution that might be identified as a result of such discussions will be subject to approval by Acacia, and the company will work with Barrick as necessary to support such discussions, it said.

"All three of our mines are continuing to operate in line with previous announcements, and we will provide an update on developments, including the proposed mining legislation, once the legislative process is complete" Acacia said.

Shares at 1145 GMT down 8.90 pence, or 3.1%, at 278.40 pence, valuing the company at GBP1.14 billion.

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-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

July 04, 2017 08:02 ET (12:02 GMT)