Acacia Shares Rise on Reports of Agreement with Tanzanian Government

By Adam Clark Features Dow Jones Newswires

Shares in Acacia Mining PLC (ACA.LN) rose 26% on Thursday after reports that its majority shareholder, Barrick Gold Corp. (ABX.T), reached an agreement with the Tanzanian government over operations at its gold mines in the country.

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Earlier in the day, Reuters reported that Barrick agreed to make a $300 million one-off payment and give Tanzania a 16% stake in the three mines operated by Acacia, plus a 50% share of revenue from the operation--although the deal will have to be approved by Acacia's directors and independent shareholders.

Acacia said it has received a copy of the agreement, but no formal proposal, and added that it is seeking further clarification.

Acacia shares at 1513 GMT trade up 15% at 209.9 pence.

Write to Adam Clark at adam.clark@dowjones.com

(END) Dow Jones Newswires

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October 19, 2017 11:29 ET (15:29 GMT)