Aviva Corp sells Kenyan exploration business to African Barrick Gold.

By bne IntelliNews September 13, 2012
Australia-based resource development company Aviva Corporation said its shareholders have approved the sale of its Kenyan business to Tanzanian miner African Barrick Gold (ABG), aiming to focus on its coal projects in Botswana. Under the deal, ABG, which operates four gold mines in neighbouring Tanzania, will acquire Aviva Mining (Kenya), the assets of which include interests in a number of licenses in western Kenya, for initial cash consideration of AUD 20mn (EUR 16.3mn) and additional payments depending on the results from exploration. The deal is subject to approval by Kenyas competition authorities. Aviva Mining holds a number of prospecting businesses in Nyanza and Western province, where bigger reserves of gold have recently been found. ABG, which spun off in early 2010 from Canadas Barrick Gold Corporation to run its operations in Africa, made an IPO in London in March 2011, where it has a free float of 26%, while the remaining 74% are owned by Barrick. ABG is one of the five largest gold producers in Africa and the acquisition is the companys first step in expanding its footprint outside of Tanzania. ABG views the deal as an attractive entry into an underexplored and highly prospective land package in a country with a solid transport infrastructure and stable government.

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