Gold mining merger stalled by Tanzania - EDV + AcaciaFrom:
https://www.thetimes.co.uk/edition/business/gold-mining-merger-stalled-by-tanzania-2wzl286h5 The £3bn merger between two of Africa’s biggest gold miners has been thrown into doubt by Tanzania’s ban on exports of gold and copper ore.
Talks between Acacia Mining and Canada’s Endeavour Mining have stalled after the announcement earlier this month, according to sources close to the companies.
Acacia, the FTSE 250-listed resources giant formerly known as African Barrick Gold, makes about 30% of its revenues from mining gold and copper in Tanzania.
It emerged in January that it had approached Endeavour about a deal, although the terms were not disclosed. It is understood that discussions have failed to progress in the past two weeks as both sides await clarity on Tanzania’s long-term plans.
One sticking point is the value of any stock element of the offer from Acacia. Its shares have fallen about 15% since the ban was announced.
A source close to Endeavour said it did “not need the deal”. Both companies declined to comment.
If successful, the deal would create a gold mining giant with more than 1m ounces of annual production with assets in Mali, Ghana, Ivory Coast, Burkina Faso and Tanzania.
Tanzania’s ban is aimed at making sure materials produced in its mines are processed there as well.
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