The Licences are located in areas adjacent to the Bulyanhulu mine and have the potential to add significant mineral reserves to Barrick’s asset base in Tanzania.
Upon regulatory approval by the FCC, Bulyanhulu will acquire from a 100 per cent % interest in six prospecting licensees held by Target firm with the transaction and Private Placement expected finalized in the first quarter of 2022.
Under the terms of the Purchase Agreement, Bulyanhulu is entitled to pay $6 million (approximately 13.9bn/-) for the six prospective licensees plus other contingent payments.
Bulyanhulu will also be required to invest a minimum of $9 million (approximately 20.9bn/-) in the Licence Area over the course of the four years following the closing of the Transaction.
Concurrently with the execution of the Purchase Agreement, Bulyanhulu agreed to subscribe for, on a non-brokered private placement basis, 5,518,764 of common shares of Tembo at a price of C$0.27 per common share
Bulyanhulu Gold Mine is a joint venture between Barrick and the Government of Tanzania, with Barrick having an 84 percent shareholding while Government owns the remaining 16 percent shares.
According to a public notice issued by FCC yesterday, the merging firms submitted Asset Purchase Agreement dated December 7, 2021 with Bulyanhulu expressing its intention to acquire six prospecting licensees from Target firm.
According to the Fair Competition Act, 2003, FCC is mandated to investigate entry into and exit from markets.
FCC’s decision will be based on the investigation made ensures that rights and interests of third parties are wholly protected as well as the effect of the merger in the market.
“FCC has begun the review and investigation of the intended acquisition with a view to examine whether it is likely to harm competition,” the public notice said.
The FCC called upon the public (petitioners) who deem themselves as having sufficient interest inj the merger or have objections to the merger to submit their petitions with a view to assist FCC in reaching just and reasonable decisions with regard to the intended merger.
“All petitioners are hereby notified to submit their petitions within 14 days from the first publication of the notice,” according to the statement.
Bulyanhulu on December 7, 2021 entered into a binding agreement with, Tembo Gold Corp the Mineral Industry Promotion and Consulting Company Limited (“MIPCCL”), a wholly-owned subsidiary of Tembo, in respect of the acquisition of certain prospecting licenses.
The Barrick president and chief executive Mark Bristow in a statement last year said the acquisition was a significant step forward in the company’s strategy of increasing its investment in new growth opportunities in Tanzania and a further demonstration of the value-creation potential of its partnership with the government.