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Deadline extended for Barricks Acacia bid

Barrick Gold has said it needs more time to firm up its indi..

Barrick Gold has said it needs more time to firm up its indicative offer for Acacia Mining.

The Canada-based gold miner now has until 19 July to form make a proposal to investors holding the 36.1 per cent of Acacia shares it does not yet own.

Read more: Acacia production bounces after shareholder opposes Barrick takeover

It came as an independent consultancy released a report saying that Acacia is worth considerably more than Barricks indicative bid. SRK said its preferred value for Acacia was 271p per share.

Barrick made an indicative bid to take London-listed Acacia private in May, saying it was the best way to solve an ongoing dispute with the Tanzanian government.

Tanzania, where Acacia runs its gold mines, has claimed the company owes $190bn in back taxes.

It alleges that the miner under-reported for decades the amount of gold in its gold-bearing ore.

President John Magufuli has banned Acacia from exporting its ore until it pays the back taxes. He is demanding around four times the countrys annual GDP.

Acacia, which denies the charges, has hit out at Barrick, which is its biggest owner with nearly 64 per cent of shares.

It claims that Barrick froze it out the negotiations. In 2017 John Thornton, Barricks executive chair, flew to Tanzania and negotiated directly with the regime.

Meanwhile, Barrick has said that Magufulis government refuses to speak to Acacia. It says it has reached a preliminary deal with the country on profit-sharing.

Launching a full takeover for Acacia is the best way to solve the impasse, BarrRead More