ABG offloads Tulawaka to Tanzania State miner
JOHANNESBURG (miningweekly.com)– African Barrick Gold (ABG) has reached an agreement with the Tanzanian State Mining Corporation (Stamico), in which the State miner would acquire the Tulawaka gold mine and certain exploration licenses surrounding the operation for $4.5-million, as well as the granting of a 2% net smelter royalty on future production in excess of 500 000 oz, capped at $500 000.
As part of the agreement, 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 Tulawaka.
This would result in a cash payment by ABG to Stamico of $17.6-million, the current balance of the rehabilitation fund, less the transaction consideration on completion.
“Tulawaka was a highly successful mine for ABG and this transaction provides Stamico the opportunity to further develop the domestic Tanzanian mining industry,” commented AMG CEO Brad Gordon.
Tulawaka was currently owned by the Tulawaka joint venture, in which ABG holds a 70% economic interest, through a wholly owned subsidiary, and Canadian miner MDN holds the remaining 30%.
The transaction – which was approved by the ABG board, ABG subsidiaries and Stamico – remained subject to the satisfaction of regulatory approvals before completion.
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