Barrick Gold Corporation
NYSE : ABX
TSX : ABX

Barrick Gold Corporation

October 19, 2017 09:25 ET

Barrick Reports Progress on Proposed Framework for Acacia Mining plc Operations in Tanzania

TORONTO, ONTARIO--(Marketwired - Oct. 19, 2017) -

All amounts expressed in U.S. dollars

Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) ("Barrick" or the "Company") today announced that the Company and the Government of Tanzania have agreed on a framework for a new partnership between Acacia Mining plc and the Government of Tanzania, whereby economic benefits generated by Acacia's operations would be shared with Tanzania on a 50/50 basis going forward.

A framework outlining the necessary steps for achieving this outcome was signed today in Dar es Salaam following a meeting between Barrick Executive Chairman John L. Thornton and the President of the United Republic of Tanzania, His Excellency Dr. John P. Magufuli.

"Following constructive discussions with our Tanzanian partners, we have developed a framework for a modern, 21st century partnership that should ensure Acacia's operations generate sustainable benefits and mutual prosperity for the people of Tanzania, as well as for the owners of Barrick and Acacia," said Barrick Executive Chairman John L. Thornton. "A partnership requires trust between the parties, and transparency is the currency of trust. Through our discussions over the last three months we have established both and this will form the basis of our relationship in the future."

Barrick and the Government of Tanzania have also agreed to form a working group that will focus on the resolution of outstanding tax claims against Acacia. Under this proposal, as a gesture of good faith, Acacia would make a payment of $300 million to the Government of Tanzania, with payment terms to be settled by the working group.

All proposals are subject to review and approval by the Independent Committee of Acacia's Board of Directors and Acacia shareholders. Acacia will provide further details on the proposals in due course.

Barrick holds a 63.9 percent equity interest in Acacia, a publicly traded company listed on the London Stock Exchange that is operated independently of Barrick.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this press release, including any information as to Barrick's strategy, plans, or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "should", "would", "intends", "will" and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to Barrick's expectations regarding the potential benefits resulting from a new partnership between Acacia and the Government of Tanzania. Forward-looking statements are necessarily based upon a number of estimates and assumptions; including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information.
Such factors include, but are not limited to: changes in national and local government legislation, taxation, controls, or regulations and/or changes in the administration of laws, policies, and practices, expropriation or nationalization of property and political or economic developments in Tanzania; lack of certainty with respect to foreign legal systems, corruption, and other factors that are inconsistent with the rule of law; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); timing of receipt of, or failure to comply with, necessary permits and approvals; failure to comply with environmental and health and safety laws and regulations; litigation; damage to the Company's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company's handling of environmental matters or dealings with community groups, whether true or not; the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; diminishing quantities or grades of reserves; increased costs, delays, suspensions, and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges, and disruptions in the maintenance or provision of required infrastructure and information technology systems; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the impact of inflation; fluctuations in the currency markets; contests over title to properties, particularly title to undeveloped properties, or over access to water, power, and other required infrastructure; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development, and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding, and gold bullion, copper cathode, or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).

Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements, and the risks that may affect Barrick's ability to achieve the expectations set forth in the forward-looking statements contained in this press release.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contact Information

  • INVESTOR CONTACT: Daniel Oh
    Senior Vice President, Investor Engagement and Governance
    +1 416 307-7474
    doh@barrick.com

    MEDIA CONTACT: Andy Lloyd
    Senior Vice President, Communications
    +1 416 307-7414
    alloyd@barrick.com