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.