Acacia share price spikes as Chinese suitors circle
Shares in Acacia rose sharply in the final minutes of trading today amid reports Chinese suitors were circling the troubled gold miner.
Acacia confirmed the reports in an after-hours announcement.
The miner said it had “commenced a process to explore the value to the Company of the sale of a stake in some or all of its Tanzanian operations”.
It continued: “The company is engaging with a small number of potential investors, the process remains at a very early stage and there can be no certainty that an agreement will be reached.”
Acacia’s share price leapt four per cent from 159.7p at 4.15pm to close at 165.7p
Reuters reported shortly after 4pm today China’s Shandong Gold Mining and Zijin Mining Group were in separate talks with Acacia to form a joint venture for its Tanzania mines.
Read more: Acacia scraps its dividend and posts a $700m loss on Tanzania woes
Shares
In its statement, the London-listed firm added: “Acacia continues to support the ongoing negotiations between the Government of Tanzania and Barrick Gold Corporation, Acacia’s majority shareholder, in seeking to identify a detailed proposal to present to Acacia for review.
“Acacia remains committed to shareholder value and evaluates all opportunities against strict strategic and financial criteria and any transaction will be pursued only if it is determined by Acacia’s Board to be in the best interests of all shareholders. The company confirms that it has not received an approach from any third parties to acquire shares in the company.”
Read more: Acacia Mining’s output continues to drag amid Tanzania export ban