Tulawaka
JOHANNESBURG (miningweekly.com) – African Barrick Gold (ABG) has completed the transfer of the Tulawaka gold mine and certain exploration licences to Tanzanian State mining company Stamico, after announcing the $4.5-million deal in November.
ABG said in a statement on Tuesday that it would also receive a 2% net smelter royalty on future production from the Tanzania-based gold mine in excess of 500 000 oz, capped at $500 000.
As previously announced, Stamico would take over ownership and management of the rehabilitation fund, established as part of the closure plan for the mine, in return for the assumption of all remaining past and future closure and rehabilitation liabilities for the operation.
As a result, ABG had transferred the balance of the rehabilitation fund to Stamico, less the transaction consideration and other closing adjustments, which equated to a cash payment of $11.6-million.
“Tulawaka was a highly successful mine for ABG and this transaction provides Stamico the opportunity to further develop the domestic Tanzanian mining industry,” ABG CEO Brad Gordon said last year.
Tulawaka was owned by the Tulawaka joint venture, in which ABG held a 70% economic interest through its wholly owned subsidiary, while Canadian miner MDN held the remaining 30%.