ACACIA MINING PLC Further response to media reports in Tanzania
October 17 2018 - 10:44AM
UK Regulatory
TIDMACA
17 October 2018
Acacia Mining plc
LSE:ACA
("Acacia" or the "Company")
Further Update on the Situation in Tanzania
Employee and Former Employee of Tanzanian Businesses Charged
Three Tanzanian Companies Charged
Further to the earlier announcement this morning, the Company advises that a
current and a former employee of its Tanzanian businesses, together with three
of the Group's Tanzanian companies, have been charged today by the Tanzanian
Prevention and Combating of Corruption Bureau (PCCB) with a number of different
offences including breaches of the Tanzanian Anti-Money Laundering Act. Each
of the Group companies and both the current employee and the former employee
have pleaded not guilty to all charges. The Company notes with concern that
under Tanzanian law offences under the Anti-Money Laundering Act are not
bailable, and accordingly the accused have not been released on bail.
The Company is in the process of analysing the charges now brought by the PCCB,
and will be able to comment further once more details are known. In the
meantime, the Company notes that a total of 39 charges have been brought,
either against the current and the former employee and/or against one or more
of the Company's operating subsidiaries in Tanzania, Pangea Minerals Limited
("PML"), Bulyanhulu Gold Mine Limited ("BGML") and North Mara Gold Mine Limited
("NMGML"). A Canadian company, Explorations Minieres du Nord Ltd, has also
been charged. The majority of the 39 charges and allegations now brought by
the PCCB appear to relate to the historical structuring and financing of PML,
BGML and NMGML dating back as far as 2008, prior to the creation of the Acacia
Group at the time of its initial public offering in 2010. The charges are wide
ranging and include: tax evasion, conspiracy, a charge under organised crime
legislation, forgery, money laundering and corruption.
As advised previously, the PCCB are reported in Tanzanian media to have stated
that they have arrested two people as part of their "ongoing investigation into
natural resources exploitation" and as part of the "war that the government is
waging in the Minerals sector", and alleged that the two people arrested had
"occasioned the Government losses".
As the Company reported on 11th October 2018, in connection with charges
brought against another Group employee in Tanzania, the Company's 19 month
disputes with the GoT remains unresolved. While the Company remains of the
view that a sustainable negotiated resolution of its disputes with the GoT is
the preferred outcome, the interests of stakeholders have been protected in the
meantime through the international arbitrations commenced in respect of the
Bulyanhulu and Buzwagi businesses, with a number of procedural steps completed
and in which the GoT has been fully participating. The great majority of
matters the subject now of criminal proceedings by the Government relate to
matters already being considered in the arbitrations. The Company is
also continuing to engage with Barrick Gold Corporation ("Barrick") to seek to
understand the future conduct and a timetable for the completion of Barrick's
direct discussions with the GoT, in which the Company is not directly
involved. In particular, the Company is seeking to engage with Barrick to
understand how the recent significant escalations of Government actions against
BGML, NMGML and PML and employees will be taken into account in their direct
discussions.
In light of recent developments in Tanzania, the Company is now considering its
position including in particular with respect to the Government actions and the
charges now being brought.
The Company will provide further updates in due course.
ENQUIRIES
For further information, please visit our website: www.acaciamining.com or
contact:
Acacia Mining plc
+44 (0) 20 7129 7150
Sally Marshak, Head of Investor Relations and Communications
Camarco
+44 (0) 20 3757 4980
Gordon Poole / Nick Hennis
Disclaimer and forward-looking statements
This announcement is for information purposes only and does not constitute an
invitation or offer to underwrite, subscribe for or otherwise acquire or
dispose of any securities of Acacia in any jurisdiction.
This announcement includes "forward-looking statements" that express or imply
expectations of future events or results as opposed to historical facts. These
statements include, financial projections and estimates and their underlying
assumptions, statements regarding plans, objectives and expectations with
respect to future production, operations, costs, projects, and statements
regarding future performance. Forward-looking statements are generally
identified by the words "plans," "expects," "anticipates," "believes,"
"intends," "estimates" and other similar expressions.
All forward-looking statements involve a number of risks, uncertainties and
other factors, many of which are beyond the control of Acacia, which could
cause actual results and developments to differ materially from those expressed
in, or implied by, the forward-looking statements contained herein. Factors
that could cause or contribute to differences between the actual results,
performance and achievements of Acacia include, but are not limited to, changes
or developments in political, economic or business conditions or national or
local legislation or regulation in countries in which Acacia conducts - or may
in the future conduct - business, industry trends, competition, fluctuations in
the spot and forward price of gold or certain other commodity prices (such as
copper and diesel), currency fluctuations (including the US dollar, South
African rand, Kenyan shilling and Tanzanian shilling exchange rates), Acacia's
ability to successfully integrate acquisitions, Acacia's ability to recover its
reserves or develop new reserves, including its ability to convert its
resources into reserves and its mineral potential into resources or reserves,
and to process its mineral reserves successfully and in a timely manner,
Acacia's ability to complete land acquisitions required to support its mining
activities, operational or technical difficulties which may occur in the
context of mining activities, delays and technical challenges associated with
the completion of projects, risk of trespass, theft and vandalism, changes in
Acacia's business strategy and ongoing implementation of operational reviews,
as well as risks and hazards associated with the business of mineral
exploration, development, mining and production and risks and factors affecting
the gold mining industry in general.
Although Acacia's management believes that the expectations reflected in such
forward-looking statements are reasonable, Acacia cannot give assurances that
such statements will prove to be correct. Accordingly, investors should not
place reliance on forward-looking statements contained in this announcement.
Any forward-looking statements in this announcement only reflect information
available at the time of preparation. Save as required under the Market Abuse
Regulation or otherwise as may be required under applicable law, Acacia
explicitly disclaims any obligation or undertaking publicly to update or revise
any forward-looking statements in this announcement, whether as a result of new
information, future events or otherwise. Nothing in this announcement should be
construed as a profit forecast or estimate and no statement made should be
interpreted to mean that Acacia's profits or earnings per share for any future
period will necessarily match or exceed its historical published profits or
earnings per share.
END
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