16 Jan Acacia Mining to merge with Canadian gold exploration firm
African gold mining company Acacia Mining (LSE:ACA) has announced it is in talks with Endeavour Mining Corporation (TSX:EDV) regarding a possible merger deal.
Both companies are heavily invested in the African gold mining industry, therefore a merger would combine Acacia’s operations in Tanzania with Endeavour’s mines in Côte d’Ivoire, Burkina Faso, Mali and Ghana.
The deal comes at a time when shares in both firms have significantly increased, and would allow the resulting unified company to build on its existing assets through new exploration projects across the continent.
However, Acacia remains cautious about the deal. In a statement the company said: “Acacia confirms that it is in preliminary discussions regarding a possible combination with Endeavour. This may or may not result in agreement of a transaction.”
Gold supply it set to peak at the end of the decade, but prices are expected to rise in the precious metal over the following year, due to geopolitical developments and negative interest rates.