Barrick Gold Sees Some Validation in SRK Report on Acacia
July 10 2019 - 02:20AM
Dow Jones News
By Carlo Martuscelli
Barrick Gold Corp. (ABX.T) said Wednesday that talks to buy
Acacia Mining PLC (ACA.LN) are continuing, and that parts of a
report evaluating the target corroborated its own analysis.
The Toronto-based gold miner responded to a recent report
published by SRK Consulting (UK) Ltd. which examined Acacia
Mining's assets. It found the company to have a preferred value of
271 pence a share--a 49% premium to its closing price on Tuesday of
181.30 pence a share, valuing it at roughly $1.42 billion.
While Barrick said that it was still reviewing the report, it
notes that the risk factors raised in it back its own analysis of
Acacia's mine plans. Barrick also contested certain estimates
Barrick has made of one of its Tanzania mine assets. The company
said that, following certain results made public by Acacia, it
believes that current estimates of the Gokona underground mine are
no longer sustainable.
Barrick said it plans on meeting with representatives of both
Acacia and SRK to discuss the report. Shareholders will be updated
by the end of next week latest.
The Canadian company holds a 64% stake in Acacia, and proposed
acquiring the London-listed miner via a stock swap of 0.153 Barrick
share for each share of Acacia it doesn't already own in May. Based
on current share prices, this equates to a value of around 196
pence a share.
The deadline for the deal was yesterday, but Acacia announced at
the end of the day that the U.K. Panel on Takeovers and Mergers has
agreed to extend the deadline again--until July 19.
Oliver Griffin contributed to this article.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
July 10, 2019 03:05 ET (07:05 GMT)
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