Jim Sinclair’s Commentary
I believe that business can be done, most certainly when the leader of Tanzania, a strong man and a patriot, accomplishes the extinction of corruption; which is his laudable goal. To see the largest company in gold now run by the leading executives in the industry, who are working to resolve serious business differences verifies my public view of the developing positive political conditions.
Bloomberg: Barrick Gold Moves Toward Resolution Of Tanzania Dispute
December 12, 2018
Barrick Gold (ABX +2.7%) has reached an agreement with Tanzania’s government on a $300M payment toward resolving a dispute that has crippled its Acacia Mining (OTCPK:ABGLF) subsidiary, Bloomberg reports.
Deal terms reportedly are now being handed off to a tax working group in Tanzania for review, then would need to be reviewed by Acacia’s board and the U.K. listing authority, and then voted on by shareholders; Tanzanian Pres. Magufuli also would need to review the findings to determine whether the deal is in the best interests of the country.
A deal would be a major victory for Randgold (GOLD +2.3%) CEO Mark Bristow, who will take charge of ABX in January upon culmination of the merger of the two miners, and is seen as an important first step should ABX decide to buy up remaining shares in Acacia it does not already own.