Acacia Mining PLC (LSE:ACA, Financial) announced on March 21 that it was no longer seeking a merger with Endeavour Silver Corp. (EXK, Financial).
The British gold producer headquartered in London began preliminary merger discussions with the Canadian Endeavour in January.
The stock market did not positively react to Acacia’s decision. After the announcement, shares were down nearly 3%, from 477.80 pounds ($596.6) per share on March 22 to the current share price of 462.50 pounds.
Source: Google Finance
While Acacia's reason for ending negotiations is not known, this decision will not compromise the company's goal of becoming a leader in the African gold mining industry by 2020.
Furthermore, Brad Gordon, CEO of Acacia Mining, believes the company’s three operating mines in Tanzania “will continue to unlock significant value” for the company’s shareholders. He added the company is "excited by the potential of the recently announced high-grade discovery in Kenya.”
Concerning the imposition of an export ban on gold and copper concentrates by the Tanzanian government, Acacia Mining’s management is still negotiating with the country’s government and other stakeholders in order to have it lifted. The company says the situation has not yet changed.
Disclosure: I have no positions in any stock mentioned in this article.
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