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UPDATE 1-Acacia seeks clarification on Barrick-Tanzania deal

Published 2017-10-20, 03:40 a/m
Updated 2017-10-20, 03:50 a/m
© Reuters.  UPDATE 1-Acacia seeks clarification on Barrick-Tanzania deal

LONDON, Oct 20 (Reuters) - Gold miner Acacia Mining ACAA.L said on Friday it would need to approve a deal struck by majority owner Barrick Gold ABX.TO and the Tanzanian government and that it sought further clarification on the agreement.

Barrick Gold on Thursday said Acacia had agreed to pay Tanzania $300 million and hand the government a 16 percent stake in three of its gold mines. introduced a ban on exports of unprocessed gold and copper and introduced laws that increase its ownership of mines as it believes it is not getting a fair share of its minerals.

"Acacia continues to seek further clarification and as yet no formal proposal has been put to Acacia for consideration," the miner said in a statement.

London-listed Acacia was not directly involved in negotiations. Its shares in London edged up 2 percent in early trade.

As a result of the March export ban, Acacia reported on Friday that its core earnings or EBITDA fell 60 percent to $50 million. The company also cut spending by 33 percent.

Its cash balance at the end of September was $95 million, down nearly 70 percent from a year earlier, Acacia said.

Tanzania's largest gold miner said gold production for the quarter fell to 191,203 ounces, down 8.3 percent quarter on quarter, as it had reported on Oct. 12. analysts said in a note that EBITDA came below its estimates and consensus expectations but that investors would mainly "focus on gaining more clarity following yesterday's announcements regarding a potential solution to the Tanzanian export ban".

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