Orecorp Tanzania Limited and Orecorp Mining Mauritius Ltd signed a binding conditional heads of agreement to acquire additional 49% stake in Nyanzaga gold project from Acacia Mining plc (LSE:ACA) for $7 million on July 20, 2018. Pursuant to the transaction, Acacia Mining plc will retain a net smelter return royalty, capped at $15 million. As per the update on July 22, 2019, OreCorp will not pay $15 million royalty and will replace with an additional $1.5 million cash. OreCorp will now pay $11.5 million cash for acquiring the Nyanzaga gold project. In a related transaction, OreCorp Limited agreed to acquire an additional 26% stake in Nyanzaga gold project from Acacia Mining plc for $3 million. As of August 16, 2019, OreCorp announced the placement of 53.1 million ordinary shares at an issue price of AUD 0.25 ($0.17) per share to domestic and overseas institutional and sophisticated investors to raise gross proceeds of AUD 13.3 million ($9 million) to be used to fund the acquisitions. Upon completion of the two transactions, OreCorp will own 100% of Nyanzaga gold project. The transaction is subject to approval from the Tanzanian Fair Competition Commission (FCC) and Mining Commission, grant of the Special Mining Licence (SML) in respect of the project and entry into definitive documents. On September 6, 2018, fair competition commission approved the transaction and OreCorp Tanzania entered into a completion agreement with Acacia Mining plc. As on September 16, 2019, Tanzanian Mining Commission approved the transaction.
Orecorp Tanzania Limited and Orecorp Mining Mauritius Ltd completed the acquisition of additional 49% stake in Nyanzaga Gold Project from Acacia Mining plc on October 21, 2019. OreCorp Tanzania Limited has paid the stamp duty assessment on the consideration. The board of Nyanzaga now solely comprises of OreCorp representatives.