https://www.engineeringnews.co.za

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

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

Photo by Bloomberg

19th December 2017

By: Reuters

  

Font size: - +

JOHANNESBURG – Acacia Mining said on Tuesday it would sell its 2% royalty over the Houndé mine in Burkina Faso for $45-million to Sandstorm Gold.

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, the world's biggest gold miner and 63.9% 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.

Edited by Reuters

Comments

Showroom

Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 
Alco-Safe

Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.265 0.323s - 156pq - 2rq
Subscribe Now