17 October 2018
Acacia Mining
plc
LSE:ACA
(“Acacia” or the “Company”)
Further Update on
the Situation in Tanzania
Employee and
Former Employee of Tanzanian Businesses Charged
Three Tanzanian
Companies Charged
Further to the earlier announcement this morning, the Company
advises that a current and a former employee of its Tanzanian
businesses, together with three of the Group’s Tanzanian companies,
have been charged today by the Tanzanian Prevention and Combating
of Corruption Bureau (PCCB) with a number of different offences
including breaches of the Tanzanian Anti-Money Laundering
Act. Each of the Group companies and both the current
employee and the former employee have pleaded not guilty to all
charges. The Company notes with concern that under Tanzanian
law offences under the Anti-Money Laundering Act are not bailable,
and accordingly the accused have not been released on bail.
The Company is in the process of analysing the charges now
brought by the PCCB, and will be able to comment further once more
details are known. In the meantime, the Company notes that a
total of 39 charges have been brought, either against the current
and the former employee and/or against one or more of the Company’s
operating subsidiaries in Tanzania, Pangea Minerals Limited (“PML”),
Bulyanhulu Gold Mine Limited (“BGML”) and North Mara Gold Mine
Limited (“NMGML”). A Canadian company, Explorations Minieres
du Nord Ltd, has also been charged. The majority of the 39
charges and allegations now brought by the PCCB appear to relate to
the historical structuring and financing of PML, BGML and NMGML
dating back as far as 2008, prior to the creation of the Acacia
Group at the time of its initial public offering in 2010. The
charges are wide ranging and include: tax evasion,
conspiracy, a charge under organised crime legislation, forgery,
money laundering and corruption.
As advised previously, the PCCB are reported in Tanzanian media
to have stated that they have arrested two people as part of their
“ongoing investigation into natural resources exploitation” and as
part of the “war that the government is waging in the Minerals
sector”, and alleged that the two people arrested had “occasioned
the Government losses”.
As the Company reported on 11th October
2018, in connection with charges brought against another
Group employee in Tanzania, the Company’s 19 month disputes
with the GoT remains unresolved. While the Company remains of
the view that a sustainable negotiated resolution of its disputes
with the GoT is the preferred outcome, the interests of
stakeholders have been protected in the meantime through the
international arbitrations commenced in respect of the Bulyanhulu
and Buzwagi businesses, with a number of procedural steps completed
and in which the GoT has been fully participating. The great
majority of matters the subject now of criminal proceedings by the
Government relate to matters already being considered in the
arbitrations. The Company is also continuing to engage with
Barrick Gold Corporation (“Barrick”) to seek to understand the
future conduct and a timetable for the completion of Barrick’s
direct discussions with the GoT, in which the Company is not
directly involved. In particular, the Company is seeking to
engage with Barrick to understand how the recent significant
escalations of Government actions against BGML, NMGML and PML and
employees will be taken into account in their direct
discussions.
In light of recent developments in Tanzania, the Company is now considering its
position including in particular with respect to the Government
actions and the charges now being brought.
The Company will provide further updates in due course.
ENQUIRIES
For further information, please visit our website:
www.acaciamining.com or contact:
Acacia Mining plc
+44 (0) 20 7129 7150
Sally Marshak, Head of Investor
Relations and Communications
Camarco
+44 (0) 20 3757 4980
Gordon Poole / Nick Hennis
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.