Acacia Mining share price (ACA) surges after Barrick Gold and Tanzania strike a deal

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.

The company and the government had been in talks for months working to resolve a dispute over an export ban which has sent Acacia’s shares spiralling since March.

Read more: Acacia Mining is dialing down operations in Tanzania – here’s why