http://www.mining-journal.com/
Two months after announcing they were in discussions about a possible merger, Acacia Mining (LN:ACA) and Endeavour Mining (CN:EDV) have called it quits, deciding a joint Africa-focused gold mining proposition is not in the best interest of shareholders.
The combination, which would have seen Acacia’s Tanzania operations joined with Endeavour’s West Africa assets, had been heralded as the first major piece of gold M&A in 2017 and got analysts and bankers, alike, very excited at the prospect of further corporate transactions.
In separate statements, the two said they had agreed to terminate discussions, with shareholder value seemingly the main sticking point. The deal was initially seen as a way for Barrick Gold (CN:ABX) to more than halve its 64% Acacia stake to a 30% level.
As is common in such announcements, both sought to reassure investors of their own future growth plans in the face of the merger talks falling over.
For Acacia, this includes the development of its prospective Kenya exploration assets. Just last month, it released a maiden resource for the Liranda Corridor project, which showed off 1.31 million ounces of contained gold at an average grade of 12.1g/t Au.