African Barrick takes a step outside Tanzania
African Barrick Gold (ABG) has proposed to buy up the outstanding share capital of Aviva Mining (Kenya), its first expansion outside Tanzania.
African Barrick Gold (ABG) has proposed to buy up the outstanding share capital of Aviva Mining (Kenya), its first expansion outside Tanzania.
ABG currently has four producing mines, all located in north-west Tanzania, and is hoping that this acquisition could add a number of licenses in neighbouring West Kenya.
However, despite the optimistic outlook for the new sites by the company, its shares fell 3.28% to 365.04p in early trading on Monday morning, in line with the wider mining sector as Eurozone concerns fuelled risk aversion.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The purchase, subject to the approval of Aviva's shareholders (which will be sought at a general meeting in late August/early September), is for an initial cash consideration of A$20m (around £13m).
"This acquisition represents the first step in expanding our footprint outside of Tanzania and building our future growth pipeline," said ABG's Chief Executive Officer Greg Hawkins.
"The acquisition is an attractive entry into an under explored and highly prospective land package in a country bordering our existing operations. Whilst Kenya is a relatively new mining destination, it has a solid transport infrastructure, a stable government and ABG already has an established supply chain in country."
Through the acquisition, ABG will buy Aviva's 51% interest in a joint venture with fellow miner Lonmin and a right to earn up to a 75% interest in a second joint venture with Advance Gold Corporation.
BC
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
The five insurance policies you should have
Some insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency
-
Is Donald Trump putting the US dollar in danger?
Donald Trump's administration sees one of its greatest advantages – the US dollar – as a burden. Gold is the obvious beneficiary, says Cris Sholto Heaton.