13:58:23 EDT Mon 25 Mar 2019
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Barrick Gold Corp
Symbol C : ABX
Shares Issued 1,751,516,088
Close 2019-02-20 C$ 18.14
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Barrick reluctantly settles Tanzania's Acacia dispute

2019-02-20 07:25 ET - News Release

Mr. Mark Bristow reports

BARRICK AND TANZANIAN GOVERNMENT PROGRESS DISCUSSIONS IN SETTLEMENT OF ACACIA DISPUTES

Barrick Gold Corp., in its capacity as a facilitator, and the government of Tanzania have arrived at a proposal that sets forth the commercial terms to resolve outstanding disputes concerning Acacia Mining PLC's operations in Tanzania. All amounts expressed in U.S. dollars.

The company will present this proposal to the independent directors of Acacia in the near future for their consideration.

The proposed framework is consistent with the agreement announced in October, 2017, and includes the following elements:

  • The creation of a local operating company to manage Acacia's operations in the country;
  • Economic benefits from Acacia's operations to be shared on a 50:50 basis. The government's share of economic benefits would be in the form of royalties, taxes and a 16-per-cent free carry interest in the Tanzanian operations;
  • A payment of $300-million to the government of Tanzania to resolve outstanding tax claims, to be paid over time on terms to be settled by the parties.

Mark Bristow, president and chief executive officer of Barrick, said: "Significant amounts of real value have been destroyed by this dispute and, in Barrick's view, this proposal will allow the business to focus on rebuilding its mining operations in partnership with their respective stakeholders, and most importantly long suffering investors, including Barrick."

Work is under way to finalize the definitive agreements needed to give effect to the proposal. To become effective, the proposal and those agreements must be approved by Acacia and the government of Tanzania, in keeping with applicable laws and regulations. Barrick holds a 63.9-per-cent equity interest in Acacia, a publicly traded company listed on the London Stock Exchange that is operated independently of Barrick.

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