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Canada’s Endeavour Mining has called off talks to merge with London-listed Acacia Mining just weeks after Tanzania unexpectedly banned exports of gold.

Endeavour said in a statement that it had terminated discussions “following the inability to reach an agreement that it believed would create adequate value for Endeavour shareholders.”

Shares in Acacia fell by almost a fifth earlier this month after it was forced to stop exports of raw gold and copper concentrate from Tanzania following an immediate ban from the country’s Ministry of Energy and Minerals.

The merger was pitched as an opportunity to create a pan-African gold company with the scale to rival Randgold Resources, London’s largest gold producer. Acacia’s assets are in Tanzania, while Endeavour produces gold from mines in Mali, Ghana and the Ivory Coast.

Sébastien de Montessus, chief executive of Endeavour, said: “We will continue to maintain a disciplined approach to business development opportunities and only enter into transactions that we believe are aligned with our long-term strategic objectives and that create value for our shareholders.”

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