TORONTO — Barrick Gold Corp. has made a proposal to acquire the shares in Acacia Mining that it does not already own.
Under the proposal, Barrick, which holds a majority stake in the African gold miner, would swap 0.153 of a Barrick share for each Acacia share.
The offer implies a value for Acacia of US$787 million, and the total consideration for Acacia’s minority shareholders at US$285 million.
The plan is subject to a number of customary conditions, including receiving the recommendation of the Acacia board.
Barrick says it has been working to help settle a tax dispute between Acacia and the government in Tanzania, but the African country is not prepared to enter into a settlement agreement directly with Acacia.
Acacia says it has been excluded from the negotiations and urged its shareholders to take no action on the Barrick proposal while its board reviews the situation.
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The Canadian Press