🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Acacia to sell Burkina Faso asset for $45 mln to Canada's Sandstorm Gold

Published 2017-12-19, 02:36 a/m
Acacia to sell Burkina Faso asset for $45 mln to Canada's Sandstorm Gold
ACAA
-
GOLD
-
SAND
-

Dec 19 (Reuters) - Acacia Mining Plc ACAA.L said on Tuesday it would sell its 2 percent royalty over the Houndé Mine in Burkina Faso for $45 million to Sandstorm Gold Ltd SSL.TO .

The deal is expected to close early in the first quarter of 2018.

Acacia, whose three producing gold mines are in Tanzania, has been hit by changes in mining laws that have dented the investment appeal of companies operating in countries such as South Africa and Tanzania, where nations feel they are not reaping the benefits of their minerals.

Barrick Gold ABX.TO , the world's biggest gold miner and 63.9 percent owner of Acacia, struck a deal with the Tanzanian government in October to end a dispute, part of which involved Acacia making a $300 million payment to the east African country.

Acacia said then it could not immediately afford the payment.

The sale will help bolster the company's balance sheet as the concentrate export ban in Tanzania enters its second year, Jefferies analysts wrote in a note on Tuesday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.