Perseus Mining Secures Critical Tanzania Agreements, Advancing $524M Nyanzaga Gold Project Development

Tanzania Grants Perseus Mining Regulatory Approval for $524 Million Nyanzaga Gold Project

Perseus Mining has secured formal agreements with the Tanzanian government for the development of its Nyanzaga Gold Project, clearing the final regulatory hurdles for what will become the company’s largest and most cost-efficient operation. The agreements establish the framework for the $524 million development, in which Perseus holds an 80% ownership stake.

The deal marks a significant milestone in Tanzania’s efforts to attract foreign investment to its mining sector, with both parties describing the negotiations as collaborative and mutually beneficial. Perseus Mining CEO Jeff Quartermaine highlighted the professional approach taken by Tanzanian officials throughout the process.

“Negotiations were aimed at removing ambiguities in the terms of existing agreements between the Government and Perseus and were conducted in a very cordial and positive atmosphere by both sides,” Quartermaine said. “This reflects well on the Tanzanian Government’s ambition to open its doors to foreign investment and to encourage foreign participation in its highly valuable mining industry.”

The Nyanzaga project is projected to produce over 200,000 ounces of gold annually from 2028 to 2035, with peak production reaching approximately 250,000 ounces in its first full year of operation. With life-of-mine average All-In Site Costs of $1,211 per ounce, Nyanzaga is expected to be Perseus’s lowest-cost operation, providing significant operational leverage across various gold price environments.

Perseus’s negotiating team was led by Chief Financial Officer Lee-Anne de Bruin, with support from General Counsel Martijn Bosboom and Tanzanian CFO and Country Manager Isaac Lupokela. Quartermaine specifically acknowledged the leadership of Tanzania’s Minister for Minerals, Anthony Mavunde, and Treasury Registrar Nehemiah Mchechu as “outstanding throughout the process.”

The executed agreements consist of two critical documents: addendums to the Framework Agreement and Shareholders’ Agreement originally established in December 2021 between the Tanzanian government and the project’s previous owner. These modifications address specific operational and commercial considerations relevant to Perseus’s development approach while ensuring alignment with Tanzania’s regulatory requirements.

This regulatory certainty allows Perseus to maintain its development timeline, with first gold production targeted for the first quarter of 2027. However, Quartermaine noted that “there remains some work to be done to fully implement the agreed changes,” expressing confidence in continued cooperation from the government.

The Nyanzaga project represents a cornerstone in Perseus’s expansion strategy, enhancing the company’s operational diversification across multiple African jurisdictions. The Australian-based gold miner currently operates a portfolio of four mining operations across West and East Africa.

For Tanzania, the agreement signals progress in the country’s efforts to revitalize its mining sector following regulatory reforms implemented in recent years. The country has been working to attract foreign investment while ensuring greater economic benefits remain within Tanzania.

Industry analysts view the agreement as a positive sign for other mining companies considering investments in Tanzania, which possesses significant untapped mineral resources but has faced investor hesitancy following regulatory changes in previous years.

The project’s robust economics—featuring above-average production volumes and below-average costs—position it as a valuable addition to Perseus’s portfolio. The low cost structure is particularly significant given the volatility in gold prices, providing Perseus with substantial operational leverage and enhancing the company’s overall margin profile.

For investors, the execution of these agreements represents a significant de-risking event, removing regulatory uncertainty that could have impacted the project’s development timeline and commercial viability. Perseus shares responded positively to the announcement, reflecting market confidence in the company’s expansion strategy and execution capabilities.

The success of the negotiations also demonstrates Perseus’s ability to effectively navigate complex regulatory environments and maintain productive partnerships with host governments—a critical competency for mining companies operating across multiple African jurisdictions.