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.
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.
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(END) Dow Jones Newswires
October 19, 2017 11:29 ET (15:29 GMT)