Shanta Gold, a gold mining company listed on the London Stock Exchange, has acquired Acacia Exploration Ltd, at a cost of KSh1.45 billion ($14.5 million). Acacia Exploration is a Kenyan subsidiary of Barrick Gold Corporation which has operations in Tanzania.
Shanta Gold paid $7 million in cash and $7.5 million in shares to Barrick Gold. The project is 1,161 square kilometers and covers the Lake Victoria gold fields that extend from Kenya to Tanzania.
Shanta Gold describes the acquisition as one of the highest grade gold projects in Africa. The South Western region in Kenya is a largely unexplored greenstone gold region.
The acquisition is projectd to provide longterm growth for the UK Gold mining company.
“The West Kenya acquisition is significant for Shanta Gold, creating an East African gold mining champion with realisable growth prospects and high asset quality across three attractive gold projects…” said Shanta Gold CEO, Eric Zurrin.
Since early 2019, Acacia mining had been looking for a strategic investor with conventional mining expertise to take the project forward. Shanta Gold has the skillset and tools needed for the operation.
In a statement, Shanta Gold Chief Executive said, “One of Shanta’s competitive advantages is being able to operate Long Hole Open Stoping operations more efficiently than its peers which lends itself well to the advancement of the West Kenya Project”.
Shanta Gold has been operating in the East African region for the past 20 years. It is the first time it will operate in Kenya.