ACACIA MINING PLC South Houndé Project Update
November 28 2018 - 1:00AM
UK Regulatory
TIDMACA
28 November 2018
Acacia Mining plc
LSE: ACA
("Acacia" or the "Company")
South Houndé Project Update
Acacia has signed a binding conditional agreement with its partner, Sarama
Resources Ltd. ("Sarama") (TSX-V:SWA), to terminate the earn-in agreement in
respect of the South Houndé Project (the "Project") in south-western Burkina
Faso. The termination of the earn-in agreement is conditional on definitive
documentation being agreed by the parties before April 30, 2019.
Acacia's divestment of South Houndé fits with the Company's strategy of
divesting certain non-core assets as part of an ongoing review of its
exploration portfolio.
The agreement will allow Sarama to move to 100% ownership of the Project by
making a payment of US$2 million in staged payments. Acacia will also receive
US$2 million once commercial production commences and retain an improved net
smelter return royalty (NSR) of 1-2%, based on a sliding rate basis on gold
price received and a capped gold production of 1Moz Au. In addition, Acacia
will be granted 5 million warrants for common shares in Sarama, exercisable for
five years.
Acacia remains committed to exploration in Burkina Faso with various earn-in
agreements still active and which provide exposure to approximately 2,000 km²
of the prospective Houndé Belt.
ENQUIRIES
For further information, please visit our website: www.acaciamining.com or
contact:
Acacia Mining plc +44 (0) 20 7129 7150
Sally Marshak, General Manager - Investor Relations & Communications
Camarco +44 (0) 20 3757 4980
Gordon Poole / Nick Hennis
About Acacia Mining plc
Acacia Mining plc (LSE:ACA) is the UK holding company of the Acacia Group,
Tanzania's largest gold miner and one of the largest producers of gold in
Africa. The Acacia Group has three mines, all located in north-west Tanzania:
Bulyanhulu, which is owned and operated by Bulyanhulu Gold Mine Limited,
Buzwagi, which is owned and operated by Pangea Minerals Limited and North Mara,
which is owned and operated by North Mara Gold Mine Limited.
The Acacia Group also has a portfolio of exploration projects in Kenya, Burkina
Faso and Mali. Acacia is a UK public company headquartered in London. We are
listed on the Main Market of the London Stock Exchange with a secondary listing
on the Dar es Salaam Stock Exchange. Barrick Gold Corporation is our majority
shareholder.
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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