Canada鈥檚 Barrick Gold (TSX:ABX)(NYSE:GOLD) has been given three more weeks to make a firm offer for the percentage in Africa鈥檚 Acacia Mining (LON:ACA)聽it doesn鈥檛 already own.
The Toronto-based miner, which has a 63.9% stake in the African company, now has until July 9 to come up with a new bid, Acacia . The original deadline for the proposed takeover,聽submitted in late May, was set to expire on Tuesday.
Tanzania鈥檚 No.1 gold producer also said it鈥檚 open to an offer, 鈥渟ubject to the price offered being fair and commanding the necessary support from shareholders.鈥�
Acacia 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 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.
Confirming , Barrick said it would allow for 鈥渢he continuation of discussions with the independent directors and further engagement with Acacia鈥檚 shareholders concerning the proposal.鈥�
The gold giant reiterated Tuesday its belief that the African miner鈥檚 ongoing dispute with Tanzania鈥檚 government has made it impossible for the miner to function as an independent public company.
鈥淚n the absence of a take-private transaction, Barrick does not consider there is any credible alternative solution which will preserve, to the extent possible, value for all stakeholders, and no such alternative has been presented by Acacia,鈥� it .
Acacia, which owns and operates Tanzania鈥檚 three major mines,聽is set to try resolving some of its issues with the government next month, in London, through international arbitration.
The new deadline given to Barrick may overlap with the legal proceedings, with most analysts opposed to the idea.
鈥淲e view [arbitration] as the least attractive outcome for minority holders,鈥� Berenberg said in a note published on Tuesday. 鈥淚n this scenario, we would assume that the conclusion of the international arbitration case is likely to be the best way for it to preserve shareholder value.鈥�
Despite Barrick鈥檚 offer values Acacia at a discount, Bristow has said the bid is the most 鈥渁ppropriate鈥� and 鈥渆legant鈥� solution to the聽long-running row聽over outstanding tax claims that has hit the African miner鈥檚 bottom-line.