FCC approves OreCorp to hold NMCL

Further to the announcements made in July 2018, the Tanzanian Fair Competition Commission (FCC) has now granted its approval for OreCorp Tanzania Limited (OreCorp Tanzania) to increase its interest in Nyanzaga Mining Company Limited (NMCL) to 51%.

 

This move remains subject to: (i) the approval of the newly established Mining Commission, the application for which was lodged at the same time as the application for FCC approval; and (ii) the future payment of US$3 million to the Acacia Group.

 

In addition, members of the OreCorp Group have now entered into a completion agreement with Acacia and other members of the Acacia Group to allow OreCorp Tanzania to move to 100% ownership of NMCL, and thereby 100% ownership of the Nyanzaga Gold Project (Project).

 

This move remains subject to: (i) the Tanzanian regulatory approvals referred to above; (ii) the grant of the Special Mining Licence (SML) in respect of the Project; and (iii) the making of a future payment of US$7 million. Following completion Acacia will retain a net smelter return production royalty over the Project, capped at US$15 million.

 

Both OreCorp and Acacia believe that a simplified ownership structure of NMCL is beneficial to the future development of the Project and would enable it to be best placed to provide significant benefits to Tanzania and all stakeholders.

 

The Nyanzaga Project is a gold development project with considerable drilling and associated mining information comprising 20 contiguous Prospecting Licences and three applications covering a combined area of 225km2 in northwest Tanzania in east Africa.

 

  • FCC approves OreCorp to hold NMCL