LONDON (Alliance News) - Acacia Mining PLC said Wednesday that majority shareholder Barrick Gold Corp has tabled a proposal with the Tanzanian government over a resolution to the miner's problems in Tanzania.
Shares in Acacia Mining were up 9.5% on the news at 246.44 pence each.
Its majority parent Barrick Gold, which has a 64% stake in Acacia, has been engaging with the government on Acacia's behalf to try to resolve the dispute.
The Toronto-listed gold miner announced Wednesday its has "arrived at a proposal" on commercial terms to resolve the dispute.
Barrick will present the proposal to Acacia "in the near future".
The proposal includes the creation of a local operating economy to manage Acacia's operations in the country.
The framework also sets outs Acacia's economic benefits from its operations are to be split 50/50. The Tanzania government will receive its share in royalties, taxes and a 16% increase in its interest in Acacia's operations in Tanzania.
Finally, the government of Tanzania is asking Acacia to pay USD300 million to resolve all outstanding tax claims.
In October, three subsidiaries and one current and one former employee were charge under Tanzania's anti-money laundering laws, while a week before that another employee was also charged with corruption.
Acacia has had more issues in Tanzania, getting a USD130,000 fine for breaching environmental rules after a "hazardous" seepage at the North Mara mine, though Acacia said it was unaware of a problem.
Barrick has recently merged with former FTSE 100 member Randgold, and in November the Times reported the newly formed group could look to fully buy out Acacia.