Shares in Acacia Mining surge after Barrick Gold and Tanzania strike a deal

Courtney Goldsmith
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Gold bars are seen at the Czech Central
Acacia finally got some good news (Source: Getty)

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.

Read more: Acacia Mining is dialing down operations in Tanzania - here's why

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