M&A

OreCorp wraps-up Nyanzaga ownership

Payment to Acacia will take cost to US$24 million, plus $15M royalty

Michael Quinn

This article is 6 years old. Images might not display.

The consolidation comes after OreCorp spent about $14 million for its initial 25% stake and recently agreed to pay another $3 million to reach 51%. 
 
Acacia also now has a net smelter royalty capped at $15 million.
 
While the payments notionally take OreCorp to 100% at Nyanzaga, the Tanzanian government is set to become an equity holder in the project with a free carried interest of not less than 16%.
 
Nyanzaga hosts a current resource of 3.1 million ounces at four grams per tonne gold.
 
A definitive feasibility study is underway with a pre-feasibility outlining a 213,000oz per annum operation costing about $290 million to develop and having all-in-costs of $857/oz.
 
OreCorp had cash at the start of the June quarter of A$16 million.
 
Shares in OreCorp were up 56% in morning trade to A26.5c, capitalising the company at $57 million. 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.