Where we have come from
Picture the scene. Three years ago – towards the end of 2022.
I’m sitting with the senior management of OreCorp (the ASX-listed then majority owners of the Nyanzaga Project) at the Seacliff Hotel in Dar es Salaam.
We’re on the terrace overlooking the Indian Ocean, enjoying a couple of cold beers at sunset.
In spite of the beautiful view, all is not entirely well with the world.
Having put the challenges of previous years behind it, Tanzania was enjoying a notable resurgence in the eyes of investors. Although a lot of positive progress had been made, the fundraising environment for Tanzanian mining projects remained extremely challenging.
When constructed, the Nyanzaga Gold Mine in the north of the country will be Tanzania’s first large gold mine in almost twenty years.
OreCorp needed to raise more than US$500 million to get the project into production.
Despite best efforts, this was not looking straightforward. And for a multitude of reasons.
We all agreed that once banks or an international investor were prepared to commit such a significant amount of funding for one project (more than half a billion USD), this would represent a truly pivotal moment for Tanzania.
And firmly cement its re-entry onto the world stage as a competitive and attractive mining destination.
Where are we now
In early 2024, Perseus Mining (the fourth largest gold miner listed on the ASX, with a total market cap of US$3.3 billion) successfully executed a hostile takeover of OreCorp, securing themselves as the majority owner of Nyanzaga.
They paid just over US$180 million.
Following the completion of the initial acquisition, Perseus then engaged closely with the Government of Tanzania to define and agree amendments to the key agreements governing the development of the project.
A key principle of these amendments was the increase in the Government of Tanzania’s free carried interest in the project from 16% to 20%.
In April 2025 Perseus announced:
- The successful conclusion of their negotiations and discussions with the Government of Tanzania. With amendments to documents now in agreed form, they would go to the Attorney General for final verification and sign-off.
- A positive Final Investment Decision on the construction of the Nyanzaga Project. With US$523 million of fresh capital committed, and with work to start immediately.
Less than a fortnight ago (on 20 August 2025), all document amendments were executed with the Government of Tanzania at a formal signing ceremony in Nyanzaga.
Construction of the project now continues in earnest, with full production/first gold pour anticipated in Q1 of 2027.
Why this is important
It has been quite a journey for the Tanzanian mining sector over the past decade.
Perseus’ investment in Nyanzaga of an aggregate US$702 million is the largest single investment ever made in the Tanzanian mining sector.
Whilst Perseus has been able to execute this using their own cash (arguably perhaps giving them some greater flexibility than if they had to raise the money exclusively from third-party financiers) – there is no doubt that a commitment of this magnitude is a huge statement of confidence in Tanzania as a jurisdiction.
In addition, the fact that the Government of Tanzania has been so proactive and supportive is in itself clear evidence of the country’s evolution towards a more sophisticated and secure place to invest.
We watch with interest as the Nyanzaga project moves to full production over the coming eighteen months, serving as a clear example to investors and government alike of what can be achieved in the true spirit of partnership.
A personal reflection
Born and bred as an M&A lawyer in the City of London, I have been based permanently in Tanzania for the past 12 years.
Having advised OreCorp on their acquisition of the Nyanzaga Project from Barrick back in 2019, it has been a privilege to now lead the Bowmans team supporting Perseus on both their acquisition of the project in 2024 and all subsequent negotiations/engagement with the Government of Tanzania.
This is truly a pivotal moment for the mining sector in Tanzania.
With Perseus and Nyanzaga now leading the way, we expect to see a significantly more favourable fundraising environment in Tanzania in the coming years, which will then further support and expedite the development of additional major mining projects.
Congratulations once again to all involved.
