OreCorp Ltd (ASX:ORR) has been granted a trading halt by the ASX, pending further information in relation to the recent announcement by Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) and the Government of Tanzania.
Overnight Barrick provided details concerning the proposal for a new, 21st century partnership with the Government of Tanzania.
The key terms included:
- A new Tanzanian operating company will be created to manage Bulyanhulu, Buzwagi and North Mara, and all future operations in the country. The principle of total transparency between partners will define how this company operates. For instance, the Government of Tanzania will participate in decisions related to operations, investment, planning, procurement, and marketing.
- This company will maximize employment of Tanzanians, building local capacity at all levels of the business, from board membership to operations. It will also increase procurement of goods and services within Tanzania. Barrick has also committed to work with the Government of Tanzania to advance concepts for increasing in-country beneficiation of gold.
- Economic benefits from Bulyanhulu, Buzwagi, and North Mara would be distributed on a 50/50 basis between the new operating company and the Government of Tanzania. The Government’s share of economic benefits would be delivered in the form of royalties, taxes, and a 16 percent free carry interest in the Tanzanian operations.
- In support of the working group’s ongoing efforts to resolve outstanding tax claims, Acacia will make a payment of $300 million to the Government of Tanzania, on terms to be settled by the working group.
- Barrick and the Government of Tanzania are also reviewing conditions for the lifting of the country’s concentrate export ban.
- The proposal is subject to review and approval by the Independent Committee of Acacia’s Board of Directors, and Acacia shareholders.
The halt will remain in place until the opening of trade on Tuesday 24th October 2017, or earlier if an announcement is made to the market.