ACA.L Regulatory News (ACA)

ACACIA MINING PLC - Agreement to Prepay Corporate Tax

PR Newswire

London, March 7

08 March 2016

Acacia Mining plc

LSE:ACA

(“Acacia” or the “Company”)

Agreement to Prepay Corporate Tax

Acacia is pleased to announce that it has signed a memorandum of understanding ("MOU") with the Tanzania Revenue Authority ("TRA") whereby Acacia will begin making payments of corporate tax in 2016. The agreement reached is the culmination of a process undertaken with the objective of further demonstrating Acacia’s commitment to Tanzania and reinforcing its relationship with all of its stakeholders.

Based on its current estimates, Acacia is bringing forward the payment of corporate tax by approximately three years, given that the taxable income generated over this period would in the first instance be offset by around US$80 million, which under the 2011 VAT Memorandum of Settlement (“VAT MOS”) was treated as a prepayment of corporate tax against any of Acacia’s operating entities. The VAT MOS amounts will be partially deferred but will still be recovered. For 2016, the targeted amount to be prepaid as corporate tax is approximately US$20 million, and that is expected to serve as a basis for the amounts to be agreed and prepaid in future years, until such time as all prepayments and VAT MOS amounts are recovered by Acacia and corporate tax declared becomes fully payable.

The MOU provides for a quarterly payment of tax, this amount being US$5 million per quarter in 2016, the first of which has been made. Under the terms of the MOU, in the first instance any corporate tax to be paid can be offset against outstanding VAT amounts owed to Acacia and which have been approved by the TRA for refund during the quarter. Any outstanding balance will then be paid in cash. Likewise, Acacia has the right to vary or suspend prepayments should the performance or financial position of the business make it necessary.

Commenting on the agreement, Brad Gordon, CEO said: "We proactively initiated discussions with the TRA in 2015 as we believe that our business is of a scale and maturity that it should be paying a fair level of corporate taxes as part of our contribution to the Tanzanian economy. We believe this agreement is mutually beneficial for all parties as we receive greater certainty over future VAT receipts and Tanzania sees an earlier corporate tax contribution from Acacia than previously envisaged. In 2015, our net tax contribution was US$109 million and this agreement will significantly enhance our overall contribution, whilst further strengthening our relationships within Tanzania."

ENQUIRIES

For further information, please visit our website: http://www.acaciamining.com/ or contact:

Giles Blackham, Investor Relations Manager

Daniel Thöle

About Acacia Mining plc

Acacia Mining plc (LSE:ACA) is Tanzania’s largest gold miner and one of the largest producers of gold in Africa. We have three producing mines, all located in north-west Tanzania: Bulyanhulu, Buzwagi, and North Mara and a portfolio of exploration projects in Tanzania, Kenya, Burkina Faso and Mali.

Our approach is focused on strengthening our core pillars; our business, our people and our relationships, whilst continuing to invest in our future. Our name change from African Barrick Gold to Acacia in November 2014 reflected a new approach to mining, and an ambition to create a leading African Company.

Acacia is a UK public company headquartered in London. We are listed on the Main Market of the London Stock Exchange with a secondary listing on the Dar es Salaam Stock Exchange. Barrick Gold Corporation is our majority shareholder. Acacia reports in US dollars and in accordance with IFRS as adopted by the European Union, unless otherwise stated in this announcement.

Disclaimer and forward-looking statements

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of Acacia in any jurisdiction.

This announcement includes “forward-looking statements” that express or imply expectations of future events or results as opposed to historical facts. These statements include, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, projects, and statements regarding future performance. Forward-looking statements are generally identified by the words “plans,” “expects,” “anticipates,” “believes,” “intends,” “estimates” and other similar expressions.

All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are beyond the control of Acacia, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements contained herein. Factors that could cause or contribute to differences between the actual results, performance and achievements of Acacia include, but are not limited to, changes or developments in political, economic or business conditions or national or local legislation or regulation in countries in which Acacia conducts - or may in the future conduct - business, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices (such as copper and diesel), currency fluctuations (including the US dollar, South African rand, Kenyan shilling and Tanzanian shilling exchange rates), Acacia’s ability to successfully integrate acquisitions, Acacia’s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to process its mineral reserves successfully and in a timely manner, Acacia’s ability to complete land acquisitions required to support its mining activities, operational or technical difficulties which may occur in the context of mining activities, delays and technical challenges associated with the completion of projects, risk of trespass, theft and vandalism, changes in Acacia’s business strategy and ongoing implementation of operational reviews, as well as risks and hazards associated with the business of mineral exploration, development, mining and production and risks and factors affecting the gold mining industry in general. Although Acacia’s management believes that the expectations reflected in such forward-looking statements are reasonable, Acacia cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward-looking statements contained in this announcement.

Any forward-looking statements in this announcement only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, Acacia explicitly disclaims any obligation or undertaking publicly to update or revise any forward-looking statements in this announcement, whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast or estimate.