AFRICAN BARRICK GOLD PLC: Renewal of North Mara Special Mining Licences
AFRICAN BARRICK GOLD PLC: Renewal of North Mara Special Mining Licences 26 November 2012
African Barrick Gold plc (the "Company" or "ABG")
Renewal of North Mara Special Mining Licences * Renewed on existing terms and conditions and for a 15 year period * Important milestone for the long-term future of the operation
ABG is pleased to announce it has received the renewals of the special mining licences at North Mara. The renewals of SML 17/96 and SML 18/96 (together, the "North Mara SMLs") are on the same terms and conditions as the previous licences and are both for a period of 15 years. The original North Mara SMLs were issued in February 2000 and had expired in September 2011, since which time the mine has continued to operate on the same basis due to the rollover provisions contained in the Tanzanian Mining Act.
Since the issue of the original North Mara SMLs twelve years ago, the mine has produced over 2 million ounces of gold and has a further 3.5 million ounces of gold remaining in reserves. SML 17/96 has been enlarged twice and now covers an area of 31.3 square kilometres and includes both the Gokona and Nyabigena pits. SML 18/96 has been enlarged six times and now covers an area of 10.5 square kilometres and includes the Nyabirama pit.
Commenting on the renewal, CEO of ABG, Greg Hawkins said: "The renewal of the North Mara SMLs represents an important step in providing a stable platform for future investment into one of our core assets. We have worked closely with the Government over the past 18 months in order to achieve the first renewal of a special mining licence in Tanzania under the Mining Act 2010, and this highlights their focus on ensuring there is a positive investment climate for Tanzania."
For further information contact:
African Barrick Gold plc+44 (0)207 129 7150
Andrew Wray, Head of Corporate Development & Investor Relations
Giles Blackham, Investor Relations Manager
RLM Finsbury+44 (0)207 251 3801
ABG is Tanzania's largest gold producer and one of the five largest gold producers in Africa. We have four producing mines, all located in northwest Tanzania, and several exploration projects at various stages of development. We have a high-quality asset base, solid growth opportunities and a clear strategy.
The key pillars to our strategy are:
* driving operating efficiencies to optimise production from our existing
asset base; * growing through near mine expansion and development of advanced-stage projects; and * organic greenfield growth and acquisitions in Africa.
Maintaining our licence to operate through acting responsibly in relation to our people, the environment and the communities in which we operate is central to achieving our objectives.
ABG is a UK public company with its headquarters in London. We are listed on the Main Market of the London Stock Exchange under the symbol ABG and have a secondary listing on the Dar es Salaam Stock Exchange. Historically and prior to our initial public offering (IPO), our operations comprised the Tanzanian gold mining business of Barrick Gold Corporation (Barrick), our majority shareholder. ABG reports in US dollars in accordance with IFRS as adopted by the European Union, unless otherwise stated in this announcement.
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 ABG in any jurisdiction.
This announcement includes "forward-looking statements" that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, 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 ABG, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, changes or developments in political, economic or business conditions or national or local legislation in countries in which ABG conducts or may in the future conduct business, future industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand, Kenyan shilling and Tanzanian shilling exchange rates), ABG's ability to successfully integrate this and future acquisitions, ABG'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 successfully and in a timely manner process its mineral reserves, risk of trespass, theft and vandalism, changes in its business strategy as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Although ABG's management believes that the expectations reflected in such forward-looking statements are reasonable, ABG cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward looking statements 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, ABG explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this announcement that may occur due to any change in ABG's expectations or to reflect events or circumstances after the date of this announcement. Nothing in this announcement should be construed as a profit forecast or estimate.
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