The Tanzanian State Mining Corporation (STAMICO) has acquired the Tulawaka Gold Mine and certain exploration licenses surrounding Tulawaka from African Barrick Gold (ABG).
The transfer, announced in November this year, is valued at US$4.5 million plus the grant of a 2% net smelter royalty on future production in excess of 500,000 ounces, capped at US$500,000.
Production at Tulawaka ceased in Q2 2013. The mine was 100% owned by the Tulawaka Joint Venture, in which ABG holds 70% through a wholly owned subsidiary, with MDN Inc holding the remaining 30%.
The transaction, which has been approved by the Board of ABG and its subsidiaries and STAMICO, was confirmed this week by STAMICO Director General, Mr Gray Mwakalukwa.
Brad Gordon, ABG’s Chief Executive Officer, said, “Tulawaka was a highly successful mine for African Barrick Gold and this transaction provides STAMICO the opportunity to further develop the domestic Tanzanian mining industry.”