Acacia Mining announced the Tanzanian Fair Competition Commission (FCC) granted approval for OreCorp Tanzania to increase its interest in Nyanzaga Mining (NMCL) to 51%.

The company said this move remains subject to: (i) the approval of the newly established Mining Commission, the application for which was lodged at the same time as the application for FCC approval; and (ii) the future payment of $3m to Acacia Group.

In addition, members of the OreCorp Group entered a completion agreement with Acacia and other members of Acacia Group to allow OreCorp Tanzania to move to 100% ownership of NMCL, and thereby 100% ownership of the Nyanzaga Gold Project (Project).

This move remains subject to: (i) the Tanzanian regulatory approvals referred to above; (ii) the grant of the Special Mining Licence (SML) in respect of the Project; and (iii) the making of a future payment of $7m. Following completion Acacia will retain a net smelter return production royalty over the Project, capped at $15m.

Both OreCorp and Acacia believe that a simplified ownership structure of NMCL is beneficial to the future development of the project and would enable it to be best placed to provide significant benefits to Tanzania and all stakeholders.