Shares in London-listed Acacia Mining rocketed up more than 35 per cent after the troubled miner's parent company struck a long-awaited agreement with the government of Tanzania.
Barrick Gold agreed Tanzania would take a 16 per cent stake in three gold mines operated by Acacia, a 50 per cent share in revenues from the mines and a one-off payment of $300m (£228m).
Shares in the firm shot up 36.6 per cent to 249.3p following the announcement, which is aimed at resolving a dispute that began when Tanzania introduced a ban on gold and copper concentrate exports in March that sent Acacia's shares spiralling.
Canada-based Barrick and the Tanzanian government have been in talks for months.
At a news conference in Tanzania, Reuters reported Barrick chairman John Thornton said the deal would need to be approved by independent shareholders and directors of Acacia Mining.