Acacia Mining (LON:ACA) has , Barrick Gold (TSX:ABX)(NYSE:GOLD), promising a detailed response to claims that its mine plans in Tanzania are not appropriately risked or supportable.
鈥淭he company strongly disagrees with a number of statements made in the announcement,鈥� said Acacia, urging its shareholders to take no action.
It also said it was 鈥渟urprised鈥� with the circumstances and timing of the comments, which immediately followed earlier announcements regarding Acacia鈥檚 agreement to Barrick鈥檚 request for an extension to the bidding deadline.
Barrick, which owns about 64% of Acacia, made an聽informal proposal聽in May to buy out Acacia鈥檚 minority shareholders with its own shares, at a ratio that implied a discount to the unit鈥檚 market value. But the聽 was considered by the African miner鈥檚 investors and some analysts as low.
The Canadian gold giant originally had until Tuesday to come up with a formal, perhaps better bid, but UK regulators granted the company a further three weeks.
Barrick鈥檚 chief executive Mark Bristow the company has called on minority shareholders to back the company鈥檚 all-paper offer for Acacia Mining, warning of a 鈥渃atastrophic鈥� loss of value if they oppose the deal.
He went on to openly question Acacia鈥檚 assumptions for resuming operations at its flagship Bulyanhulu mine, saying Barrick was more cautious on grade, annual mining volumes and production rates.
Acacia, Tanzania鈥檚 No.1 gold producer, has been embroiled in a聽, when the 聽government banned exports of unprocessed metal and slapped it with聽 鈥� equal to almost two centuries worth of revenue.
The company, which spun off from Barrick in 2010, was also forced to cut output by a third from two of its three mines in the country 鈥� Bulyanhulu and Buzwag.
Since then, the relationship between Barrick and Acacia has been strained and progress moving an agreement forward has been 鈥渁lmost impossible,鈥澛燾hief executive Mark Bristow聽.
The executive has also said Barrick has no intention of raising its offer to buy out the rest of troubled African unit, adding that Tanzania is not prepared to enter into a settlement directly with Acacia.
Barrick, however, said on Wednesday that Bristow鈥檚 comments should not be considered a 鈥渘o-increase statement.鈥�
Bristow believes his proposed buyout is the聽most 鈥渁ppropriate鈥� and 鈥渆legant鈥� solution聽to the聽long-running row聽over outstanding tax claims that has hit Acacia鈥檚 bottom-line.