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
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
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
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
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published