ACA Acacia Mining Plc

 
TIDMACA 
 
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. 
 
 
 
END 
 

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October 17, 2018 11:44 ET (15:44 GMT)

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