African Barrick Gold has picked a new name for investors to get used to – Acacia Mining.
The UK gold miner, operational in Tanzania and Kenya and spun off by Toronto-listed Barrick Gold in 2010, remains majority-owned by its Canadian parent.
In a statement, African Barrick said its core objective is to develop a business that is recognised as a leading independent mining company in Africa. “It is therefore important that our company name reflects this,” said the company.
However, Barrick Gold has been trying for years to establish a more independent identity, reported Financial Times.
According to FT.com, an acacia tree is hardy and resilient and thrives in tough environments, which certainly sounds like the attributes a company would want in today’s gold market, after the price of the precious metal has been at four-year lows.
Barrick failed to complete a potential deal to sell ABG to a Chinese buyer last year, but did sell down part of its holding in March.
Now African Barrick will emphasise the difference with a name change subject to a shareholder vote – which should be a formality given Barrick’s support.
The extraordinary general meeting to rubber-stamp the new name is on 26 November.
African Barrick, as it is still known, said it would hold an investor day the following day.